Pennell v. San Jose

Rent control is a controversial system by which the federal, state, and local governments regulate rent rates by placing ceilings on the amount that private individuals can be charged for rent. It was initiated during World War II as part of a broader effort to control increasing prices. Rent control policies usually target urban areas and are designed to help the economically disadvantaged during an inflationary economy (increases in the cost of living such as occurred during World War II and the early 1970s). Four states currently permit rent control: New York, New Jersey, California, and Massachusetts.

In recent years, rent control has been abused by tenants in sound financial standing. In response to abuses of the system, which is costing property owners, property owners have organized to end the practice. One side effect of rent control is the increase of rent prices in non-controlled regions imposed by property owners to offset the losses incurred by rent control. The Alliance of Small Property Owners is a grassroots campaign to end rent control representing a group of small property owners in NY, NJ, CA, and MA. Boston and New York have made efforts to eliminate rent control in recent years.