Is rent control in the best interest of Low Income Renters?
Watch this presentation on rent control and its impact on the market for rental housing. When you are finished watching, please comment on whether or not you believe the theory that the professor is delivering. Why do you agree or disagree with him?
To view the lecture, click here
To view the lecture, click here
posted by Mr. Castle at
4:09 PM
7 Comments:
hmmm.... Not sure if a agree or disagree. I think one thing he got wrong is that the consumers will be worse off due to the lower quality of apartments, but, if they couldn't afford one in the first place then having a place to live is better than their previous arrangements. But otherwise his logic seems mostly correct.
To me, what was stated in the clip seems to make sense in comparing how the demand will change based on how many units there are for people looking at lower prices and how the maintenance of those apartments change the demand. The professors belief on how tenants want for low price apartment s means that they have to sacrifice appliances making the units less expensive seems to make sense.
I agree with his argument. It makes sense to me that as apartments are improved, demand for them will increase even though the price for the units is higher. The converse also makes sense, that removing capital from the owners of apartments would drive the supply and quality of units down–this would decrease demand and result in less bang for the consumer's buck. The only remedy that I see for this situation is government subsidies. By setting a maximum that an owner can charge a low income renter, and then making up the difference between the asking price and the renter's payments, the government does not undermine the market's pricing of ht apartments. This would ensure high quality apartments for renters and more reasonable returns for owners.
His arguments make sense, but it seems as though he only considers the market in general when he makes them. Personally, I don't think that rent control would have a major effect on the individual, but on the low income renters as a whole. It depends on who's best interests we focus on.
the points he makes are good, but the video could have been shorter, seeing has he just repeated the same thing over again.
I think I agree with his theory, but it's hard to decide.
His theory makes sense, but I think that whether or not the consumer will be better or worse off in a lower quality apartment has a lot to do with the consumer's previous living conditions and or background. It makes sense however, that as the price rises so does the demand for the apartment. Consumer's are expecting the apartment to be more upscale and worth their money . . . this argument pertains greatly to the more upper class consumers.
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