What kind of market situation

What kind of market situation is a rent control, and whatproblems do they actually create? If rent controls are socounterproductive, why do cities impose them? How else mighthousing problems of poor people be solved?


Rent control means that pricecontrol of the apartment market. The major problem for the rentcontrol is the shortage of apartment to the buyers. The result issome buyers are left out from the market because they despitewilling to buy at the current market price. So the apartment ownersare not ready to rent their apartment at the current marketprice.

The rent control iscounterproductive in apartment owners. Still, rent control benefitsthe seekers because it prevents an unnecessary increase in the rentof the house. It limits the rent under a certain point rather thanincreasing it.

The housing problem of the poorexists everywhere in the world. The urban poor is mostly affectedby the lack of affordable houses because of the additionaldevelopment of the government. Improper reallocation is a majorproblem in urban cities. To solve the problem of lack of housing inpoor people, the government could construct new houses, modifyexisting houses with community participation.

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