Describe the market for rental housing, as it would be in a free market without government intervention, using what you have learned about scarcity, marginal analysis in decision-making, and markets. You must include a discussion of resources, supply and demand, as well as marginal benefits and marginal costs. Think of this as an explanation of the pros and cons of the market, using specific economic terminology and concepts learned in this course.
Describe the benefits and costs but leave the discussion of rent control and other solutions to the problems in the housing market for the next part. Describe this market using the supply and demand graphical model; reference your graph in your description. Include “graph 1” of this market at the end of the paper in an appendix (not included in page count). This should be a discussion without mentioning Price Controls, only discuss how the rental housing market is without government intervention. Feel free to use any stats or data that you find through your own research – make sure you use multiple different economic terms from key concepts in chapters 1 and 3 throughout this part of the paper or you will not earn a complete on this assignment. Each individual student is required to determine what graph they would like to use in their analysis to describe the situation above; the graph can be created by the students or found through other sources as long as proper citation in provided.
Consider the reasons why the market for rental housing is not a free market in all areas of the US. Be sure to specifically discuss equity concerns as well as other implications for the economy. Expand on your discussion of the market from Part I, using what you have learned about government interventions and price controls.
Discuss current government-mandated rent control in the rental housing market in parts of the U.S. Describe this market – comparing the free market and rent control in a graph – add to the supply and demand graphical model “graph 1” OR include a separate supply and demand graphical model “graph 2” or you will not earn a complete on this assignment; reference and discuss your graph in your paper. Explain rent control and exactly how it corrects the problems of the free market. Include any other beneficial aspects of the intervention that you find through your own research – make sure you use multiple different economic terms from key concepts in chapter 4 throughout this part of the paper or you will not earn a complete on this assignment. Each individual student is required to determine what graph they would like to use in their analysis to describe the situation above; the graph can be created by the students or found through other sources as long as proper citation in provided.
Also discuss other ways the government intervenes in the rental housing markets in the US or elsewhere in the world (other than rent control). You do not need to add a graph here. Explore the policies that are currently implemented across the country and the globe (some discussed in the articles include housing vouchers, tax breaks for builders of low income housing, etc.). Evaluate the limitations of these policies. Also consider how these policies fare in terms of the efficiency vs. equity debate. (You do not need to critique them all, just select from 2 or 3 different cities or countries that you find interesting/appealing.
