In cities experiencing rapidly growing demand for housing, like Vancouver and Toronto, it is often claimed that the "overheated" real estate market puts housing out of reach of ordinary Canadians. Not surprisingly, governments often debate how best to deal with this issue. Who bears the heavy cost when rents are kept artificially low by each of the following means?
a. legislated rent controls
A. Government because government spending should be increased to compensate additional costs to landlords
B. Only new landlords because they do not get the rate of return they expected on their investments
C. Nobody suffers
D. Landlords that lose part of their income and potential future tenants who cannot get accommodation
