Nonprice methods of rationing will become more important
Because price no longer rations rental housing, other forms of competition will develop. Landlords will rely more heavily on nonmonetary discriminating devices. They will favor friends, people of influence, and those whose lifestyles resemble their own. In contrast, applicants with many children or unconventional lifestyles, and perhaps racial minorities, will find fewer landlords who will rent to them. Since the cost to landlords of discriminating against those they do not like is lower, discrimination will become more prevalent in the rationing process. In New York City, where rent controls are in force, a magazine article suggested that “joining a church or synagogue” could help people make the connections they need to get an apartment. Can you imagine having to devote this amount of effort to finding an apartment? If your city enacts rent controls, you just might have to.
Tags: housing, landlords, mortgage, price
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