Rent controls are laws that place a price ceiling (or maximum price) on what landlords are able to charge their tenants in a particular city.Although it certainly sounds wonderful to pay less for an apartment, by their very definition rent controls are inefficient and lead to market failure.

In your discussion response, address the following:

• Why are rent controls inefficient?
• What is the market failure that occurs when rent controls are imposed?
• Put economic theory aside for a moment. Do you think that cities such as New York Cityshouldutilize rent controls? Why or why not?