Florida Residents Make Plea for Rent Control as Housing Costs Become Unaffordable

As rental rates reach unprecedented levels in South Florida, calls for rent control are growing louder. But some experts say it would only make matters worse for those looking for housing.—wptv.com

Answer the following questions to check your understanding of the story.

1) How do rent controls “make matters worse for those looking for housing”?

If rent controls set rent ______________.

a) below the equilibrium rent, everyone who wants an apartment to rent can find one, but most apartments are in old buildings with poor maintenance histories

b) above the equilibrium rent, new renters must be willing to pay the rent plus additional illicit market fees

c) equal to the equilibrium rent, many renters will not be able to find an apartment unless they are willing to pay a higher illicit market rent

d) below the equilibrium rent, then not everyone who is willing to pay the rent can find an apartment.

2) Would the South Florida rental market benefit from effective rent controls?

a) No because developers have less incentive to build new units and existing landlords have an incentive to charge hidden fees

b) Yes because it results in a fair outcome where low-income people can afford their rent

c) Yes because low-income people will have access to affordable housing

d) No because although the outcome is efficient, it is also unfair

Florida Residents Make Plea for Rent Control as Housing Costs Become Unaffordable

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