Chapter 3: Q 48. (page 79)

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

Short Answer

Expert verified

1. Reduce property tax

2. Lower price of building permits

Step by step solution

Step 1.1. Reduce property tax

Property tax is the annual amount paid by a landowner to the local government or the municipal corporation of his area.

A cut in property tax makes it inexpensive for landlords to purchase more houses and rent them out with some discount or at a lower price which in turn incentivizes consumers to rent houses.

Step 2.2. Low-priced and timely building permits.

Getting a building permit to build apartments takes a lot of time and money. So if the permits are lower in price and ease of access to permits is increased. Therefore the timely implementation of the building is possible and then it is rented.

Unlock Step-by-Step Solutions & Ace Your Exams!

Full Textbook Solutions
Get detailed explanations and key concepts
Unlimited Al creation
Al flashcards, explanations, exams and more...
Ads-free access
To over 500 millions flashcards
Money-back guarantee
We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

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

Short Answer

Step by step solution

Step 1.1. Reduce property tax

Step 2.2. Low-priced and timely building permits.

One App. One Place for Learning.

Most popular questions from this chapter

Study anywhere. Anytime. Across all devices.

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

Short Answer

Step by step solution

Step 1.1. Reduce property tax

Step 2.2. Low-priced and timely building permits.

One App. One Place for Learning.

Most popular questions from this chapter

Study anywhere. Anytime. Across all devices.

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