Please list and discuss what happens to the Supply and Demand forces in the market for rental housing in a typical, “popular” U.S. city (metro area) over a typical twelve month period (before March 2020): what happens to Demand? Why? What happens to Supply? Why? What happens to price and quantity as a result over this one year time frame? Why? In theory, what happens to the price and quantity of rental housing over a typical ten year period?
When rent control, or any price control, is imposed upon a market, four alternative methods of allocation emerge to determine who gets the product or service. What are those four methods? In the case of rental housing, which of the four methods may do the greatest harm to society, in your opinion? Why? What is the problem that rent control attempts to solve? That is, what are the goals of rent control? Why does a pure price control fail to solve the problem?
Please discuss two of the alternative solutions to the problem that rent control attempts to solve. Which one of the two is superior, in your opinion? Why?
In your opinion, what should be done about the fact that in many years, the price of rental housing rises faster than the ability of many families to pay for this rise in housing costs?
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