Finding an apartment in New York City is difficult. People even scan the obituaries in the hopes of finding an apartment. Provide an economic explanation for this.

What will be an ideal response?


Rental rates in New York City are controlled and set below market clearing rates. Under the rent controls, people don’t want to give up their apartments since rents can be adjusted when a tenant leaves and a new tenant enters. This means that apartment vacancies are rare, and people who want an apartment must consider all possibilities, including death, that would generate a vacancy.