What the gonvernment should do in this housing rent market?
November 8th, 2009 Posted by: admin
The rent housing price is very high.So the gonvernment put a maximum price in order that the poors can afford them. after putting this maximum price will happen another problem. because the demand will rise and the supply will decrease. So the same situation,the poor cannot buy a house not because the price is very high but because the demand is very high. So what additional policies should be required or what should the gonvernment do about this.Whe the gonvernmet should impose such a policy to house rents.
By: ALBA
By: ALBA
Tags: Housing Market, Maximum Price, Rent
November 10th, 2009 at 05:56
Typical policy in US is that government increases the supply by building and operating cheap rental housing.
November 12th, 2009 at 12:58
By building more Affordable housing, by setting BMR Prices, BMR = Below Market Rate.
The goverment should try to avoid interfering with the natural flow of Real Estate Market, because the solution mentioned above create negative externalities: a.k.a Ghetoo Slums, Higher Crime Rate, …
Yet, the local economy needs job that are traditionally occupied by poor workers, therefore, building more houses in moderation to balance negative externalites with demand for low skilled jobs through the means of Cost-Benefit analysis
November 15th, 2009 at 23:04
Rents are based on “what the market will bear” If a landlord can get more for his rental property, he should get it. That is why he invested in it in the first place. If it’s more than you can afford then you should look elsewhere, or reduce your standards, or get a different job.
If it becomes profitable to invest in Low income housing, then investors will do so.