RENT CONTROL HARMS

THE HOUSING MARKET

EMBA60_syndicate 5
 SYNDICATE 5

Annisa Ratna Pertiwi (29118394)

Ari Eko Prasethio (29118524)
Muhammad Azizi Nun (29118531)
Silmi Fitriani (29118434)
 BACKGROUND
• The adoption of rent control in the United States of America
• Rent control is designed to keep housing prices affordable, but it lacks
apartments
• US Government set a price control of $600/month for apartment rent
in new york city.
• The equilibrium price is at $1000/month.
• The demand is 2,000,000 Unit.
• The Supply only 1,200,000 Unit.
• Controlled rent of $600/month. 2
million apartment could be rent
• The Shortage of $800.000
• When rent of $1.400/month, only
1.2 million apartment available
 ANALYSIS
• The equilibrium price of rent is $1000/month, but the price is $600
• With this price, the demand reach to 2 million
• There is shortage, with the shortage this will crate a new target market that
willing yo pay more with the price of $1.400
 CONCLUSION

Rent prices should be set at the

equilibrium price, so there is no
shortage
THANK YOU 