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Tuesday, November 19, 2019


New York is the only city in the United States to have rent controls since World War II. "Rent controls are designed to protect consumers from high rents." The case of rent controls in New York City has been studied as follows: DD curve is demand curve and SS curve is supply curve. Without controls, the balance would be at point E, where average rents are $ 2,000 per million and 3 million homes supply and demand analysis shows us why occupied units. If the rental controls are effective, the ceiling price must be lower than the equilibrium price of $ 2,000. But with a low rental ceiling, such as $ 1,200, the amount of housing required will be 3.5 million units (point B) while the quantity supplied will be a graph showing a shortfall of one million data. This theoretical concept of "imperfection" is manifested abnormally in New York City with a low vacancy rate - usually about half of the average urban population. Of course, her rental controls generated a lively black market in New York. The black market raises the actual rental price of controlled apartments in many ways, including bribes, so-called main money paid to move in the queue, rent controls reduce the amount available from 3 million to 2.5 million apartments. This reduction is shown in New York as follows: 1) Transformation of some property owners 2) The maintenance of the apartments is inadequate 3) Some landlords actually donated their buildings instead of paying high taxes and fuel bills "Public health and safety is an important impact of these observations"







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