High rent prices are a result of supply and demand
April 10, 2011
In his column, “For students, the rent is too damn high,” Aaron Brooks argues for rent controls as he believes students are being unfairly treated by the landlords.
His argument stems from property taxes collected against the students as justification that rent controls should be implemented. Aaron, however, fails to understand the laws of supply and demand. He mentions his hometown of Moline, Ill. where rent prices are cheaper but property taxes are higher and uses this as justification that rent is too high.
Aaron, why do you think rent prices in the city of Chicago are much higher than in DeKalb, which are higher than in Moline? Location, location, location. People want to live in the city; therefore, there is higher demand and higher prices. It’s basic microeconomics.
Moline, which is in the middle of nowhere, sees much lower demand than both Chicago and DeKalb. That is why prices for apartments are lower in Moline; it has nothing to do with property taxes.
Price ceilings only create demand greater than supply, causing shortages. With shortages, landlords don’t have to compete and provide services to their tenants because people on waiting lists will gladly take the apartment space.
Please, Aaron, stop and think for a second. I know you believe that your political science degree makes you qualified to speak on issues, but it doesn’t.
Before you write, actually think for a second and maybe consult an economics major or business major first. Who knows? You might actually learn something.
Daniel Kozuchowski
graduate student of accounting