Many areas of the country, but particularly New York City have rent con- trols, i.e., legal maximums (below what would otherwise prevail) on the amount of rent that can be collected on rental housing. Vacancy rates there for apartments are very low, with very long waiting lists of eager prospec- tive tenants. These characteristics seem largely absent in, say, Seattle.

a. What explains the above phenomena? Is housing somehow more scarce in New York than, say, in Chicago or Seattle?

b. What effect do rent controls have on the frequency of discrimination by landlords on the basis of such things as race, sexual preference etc.?

c. Consider a locale such as Seattle, with many single-family houses, some of which are rented, and some of which are owner-occupied, and where houses can easily be converted from one form of contract to another. Suppose rent controls are imposed in Seattle. Explain the likely effects, if possible, on the price of rental housing, owner-occupied housing, and the amount of each type available on the market.