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1. Understanding the forces that determine rental prices and vacancy rates Understanding the forces that determine prices in the market for rental housing involves analysis of the effects of regulatory constraints such as rent controls, job growth, and income growth. As you will see, the theory of supply and demand proves to be very helpful in conducting such an analysis. RENTS HIT ALL-TIME HIGHS AMID JOB GROWTH AND LOW VACANCY RATES, BY JEFF COLLINS, ORANGE COUNTY REGISTER, APRIL 17, 2017 Some residents at the Huntington Manor Apartments got a huge surprise at the start of the month. Notices affixed to their front doors courteously thanked them for renting in the neat, gated, well landscaped, pet-friendly complex. Then the notices added, effective June 1 , their rent would go up by $\$ 400$ to $\$ 600$ a month, depending on whether they sign a lease. The on-site manager has warned other tenants in the complex their rent hikes are coming in the months ahead, saying: "It's going to be ugly." No explanation was given, and the manager declined to comment further. Some tenants said they're renewing their leases since the new rents appear to be in line with prevailing rents at other complexes in From: Jeff Collins, "Rents Hit All-Time Highs Amid Job Growth and Low Vacancy Rates," Orange County Register, April 17, 2017. Permissions Copyright (C) 2017. All rights reserved. According to the article, which of the following are reasons for low vacancy levels? Check all that apply. Limited supply of rental properties High unemployment
According to the article, which of the following are reasons for low vacancy levels? Check all that apply. Limited supply of rental properties High unemployment High home prices Too many low-income workers According to the article, which of the following types of tenants are less likely to be affected by the rent price increases? Check all that apply. Low-income workers High-income workers Retirees

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