Question

Suppose it is decided that rent control in New York City will be abolished and that market rents will now prevail. Assume that all rental units are identical and so are offered at the same rent. To address the plight of residents who may be unable to pay the market rent, an income supplement will be paid to all low - income households equal to the difference between the old controlled rent and the new market rent. Are tenants better or worse off as a result of these policies?

Answer 1

The answer is "Landlords are clearly worse off as a result of these two policies".

Step-by-step explanation:

As both a consequence of such two policies, homeowners were become obviously better apart: increased owners' rent residences for increased rentals a month. Throughout fact, people who did never receive their benefit supplement who always used to rent reasonable price residences were becoming much worse.