Problem
1. Explain why the rental externality tends to make renting an asset more expensive than buying it (all else equal).
2. Residential developers often include restrictive covenants in deeds of sale that limit the actions of present and subsequent owners. Why would buyers willingly accept such covenants and possibly pay a premium for them?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.