Rent Control and Economics

Paper Summary:

In this article, the writer notes that the economic quandary of rent control has successfully perpetuated itself in many different American communities for several reasons. The writer discusses that social beliefs and political controls have allowed for renters to retain their protected "right" to cheap rent at the expense of the rights of land owners and others who would hope to prosper from a free competitive housing market in these select cities. In order to understand the effects of such regulations, the writer reviews the complex factors as well as considers the economic and social consequences. The writer concludes that rent control exists as an unfair legal construct that interferes with the fundamental rights of land owners to a fair and equitable return on their investments in order to protect the privilege of cheap rent for certain fortunate tenants.

From the Paper:

" The three outlined fallacies make the construct of rent control an obviously unfair and economically illogical attempt a giving one portion of a community's population an economic advantage. The first fallacy present occurs when rent control tenants use the excuse that their city should have rent control, because it is a special circumstance. While they may live in unusual locations with normally high rents, this concept is off base for many reasons. Specifically, this is not true because economics as a science apply themselves fairly universally as a predictive and monitoring force to all free market systems. "

Sample of Sources Used:

• Baker, S.L. (2003). Supply and demand. Economics Interactive Lecture. University of South Carolina, Columbia, SC. Retrieved August, 2005 from: http://hadm.sph.sc.edu/COURSES/ECON/SD/SD.html
• Batemarco, R. (1997, June). Three fallacies of rent control. The Freeman. Retrieved August, 2005 from: http://www.fee.org/vnews.php?nid=3785
• King, W. (1999). Chapter 3: Supply and demand. Essential Principles of Economics: A Hypermedia Text. Drexel University, Philadelphia, PA. Retrieved August, 2005 from: http://william-king.www.drexel.edu/top/prin/txt/EcoToC.html
• Black, T. (2002). Chapter 3: Supply and demand. The Economics Net-TextBook. University of Maryland University College, Adelphia, MD. Retrieved August, 2005 from: http://nova.umuc.edu/~black/ec00.html

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