Abstract
Rent control, found the world over, is an arrangement under which a governmental agency prescribes the maximum rents private landlords may charge for accommodation, as the control is intended to benefit tenants. In section I it is argued that rent control can help existing tenants, but only if it is accompanied by additional legal measures. Since the details of these legal measures change over time, and vary across areas, only examples can be provided to illustrate the argument. Yet, whatever these legal measures, rent control can not help potential tenants (except in unusual circumstances, e.g. when landlords expect it to be temporary). In section II we examine why rent control leads to inefficiency.
This chapter was originally published in The New Palgrave: A Dictionary of Economics, 1st edition, 1987. Edited by John Eatwell, Murray Milgate and Peter Newman
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Klappholz, K. (1987). Rent Control. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_1520-1
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DOI: https://doi.org/10.1057/978-1-349-95121-5_1520-1
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Rent Control- Published:
- 24 March 2017
DOI: https://doi.org/10.1057/978-1-349-95121-5_1520-2
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Rent Control- Published:
- 17 November 2016
DOI: https://doi.org/10.1057/978-1-349-95121-5_1520-1