Rent Control: Pros And Cons
Evaluate the pros and cons of rent control and rent stabilization in NYC.
Rent control is the government imposition of price ceilings on rent for
apartments in certain areas of a city. The goal is usually to protect the rights
of the poor. Thus, in a rent controlled or rent stabilized building, the amount
of rent will not increase as quickly as inflation. While the moral side of rent
control may have some appeal, in the long run the disadvantages far outweigh the
advantages.
Those who argue in favor of rent control say that it is the only way to protect
lower-income tenants from landlords who overprice, and from being forced to move
out of a neighborhood because they cannot afford the ...
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experience on their
side. First, rent control creates a market that is unfair for everyone. Since
the rent is set at a lower than normal level, an unsatisfied demand is created.
This increase in demand leads to an increase in the cost of rents in the
uncontrolled sector. Thus, two types of rents are created: those that are
unfairly cheap, and those that are unfairly expensive.
Another problem that is created is that landlords who own rent controlled
apartments are often not able to earn enough money to adequately maintain
buildings. This leads to run-down, poor quality housing. In many cases,
landlords lose so much money that they are not able to even pay the debt on the
properties, and they abandon them. Both of these effects have been documented in
New York and elsewhere, and go against the goals of rent control.
Finally, rent control has the bad side effect of turning away new construction.
This is because even if rent controls don't include new constructions, owners
are ...
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living standards and local
economic development. In basic terms, the "people" approach tends to emphasize
assistance to individuals, giving them tax breaks, financial help, job training,
and migration (to areas of better employment) assistance. The "places" approach
focuses on improving the quality of a place, in the hope that the people who
live there will benefit from the change. In my opinion, both of the approaches
have drawbacks, and a mixture of the two is the best way to solve the problems
of local economic development.
The people approach, based on making individuals more prosperous, is based on
the rationale that only people matter. Those who support it argue that if ...
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Rent Control: Pros And Cons. (2006, May 17). Retrieved April 23, 2024, from http://www.essayworld.com/essays/Rent-Control-Pros-And-Cons/46056
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"Rent Control: Pros And Cons." Essayworld.com. May 17, 2006. Accessed April 23, 2024. http://www.essayworld.com/essays/Rent-Control-Pros-And-Cons/46056.
"Rent Control: Pros And Cons." Essayworld.com. May 17, 2006. Accessed April 23, 2024. http://www.essayworld.com/essays/Rent-Control-Pros-And-Cons/46056.
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