Question

3. What are the functions of Rental prices?

Who gains and who loses from Rent Control?

Answer 1

Funtions of Rental prices are:

Promoting the renovation of existing housing, and encouraging new housing development.
Allocate insufficient existing housing to opposing claimants.
To ration the present-day demanders' use of existing housing.

People who gain from Rent controls:

Older, more stable, longer, less transitory.

middle and upper income with good credit. - better connected with better access to market information. - in possession of skills valued by landlords

Who loses from Rent controls:

Naturally, tenants, but also buyers who are unable to find the standard and quantity of rental housing that they most want and are willing to pay for. -Be younger, be more transient, be newer to the group.

Have low incomes with no credit or poor credit.-Lack of communications and lack of access to reliable knowledge on the market.

Have families , in particular bigger ones. Individuals who chose not to stay in the city because of the rental housing shortage, the high search costs and the lower rental housing quality.

Taxpayers who bear the cost of enforcing house rental ordinances.