What are the effects of rent control, both good and bad?
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To much rent control, no one wants to rent out. To little rent control, people can’t afford.
Honestly though, it all eventually balances out without rent control.
People who charge too much will lose out to people who charge less and will eventually lower their price if they go too long without getting paid.
People who charge too little will eventually go bankrupt or have to sell.
Things, on their own, will settle somewhere between what people can pay and what renters can rent.
Of course, the economy fluctuates. Sometimes the renters will be in power and the owners will be in power. When the owners are in power, it becomes tempting for people to want assistance when they can’t find homes. Adding rent control though and offering government assistance doesn’t solve the problem though, it just pushes it off to the future and the problem grows.
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