Moreover, once housing is built, it is relatively durable, making its supply downwardly inelastic. Commute to employment 5. Proximity of shopping 6. Almost invariably, these controls impose maximum prices, not minimum prices. The result is that initially the rent controls make little difference, but effectively get stricter every year.
New construction falls off, as does maintainence.
Shortage gets more and more aggravated over time. With a shortage of housing, you will still be able to get tenants. Eliminate free services 2. Charge extra for furniture 3. As quality falls, demand falls.