Can you propose a policy that would induce the market to supply more rental housing units?

To propose an effective policy, it is crucial to identify and understand the factors that influence the supply of rental housing units. Some of these factors include construction costs, taxes, regulations, and the availability of credit.

In order to increase the supply of rental housing, policymakers have several tools at their disposal: - Reducing construction costs through subsidies - Providing tax incentives to property developers and landlords - Easing regulatory restrictions on building new properties - Expanding access to credit for developers and builders

After considering the available policy options, one can propose the following policy to encourage more rental housing units in the market: Create a tax incentive program that allows property developers and landlords to receive tax deductions or credits for developing and maintaining rental housing properties. This can be achieved through a combination of the following: a. Lowering property tax rates or offering credits for rental properties b. Providing tax deductions or credits for development costs of rental housing units c. Allowing faster depreciation on rental properties for tax purposes This policy will reduce the financial burden on developers and landlords, encouraging more investment in the construction and maintenance of rental housing units. As a result, it will increase the supply of rental housing and contribute to improved affordability for renters.