Rent control is killing NYC #RealEstate
Why #NYC Apartment Buildings Are on Sale Now for 50% Off
New York has had some form of rent regulation since 1943, when federal government imposed price controls to combat inflation during WWII. After those protections expired in the early 1950s, state enacted its own measures, which applied to pre-1947 buildings. That older system, known as rent control, severely restricts what tenants pay for as long as they occupy the unit. Only 16,000 of those rent-controlled apartments remain.
Rent stabilization, which dates to 1969, covers roughly 1 million apartments, housing a quarter of the city's population. (Most units have no income restrictions.)
In New York City, tenants paid a third less for rent-stabilized apartments than they would have for equivalent market-rate apartments, an annual discount adding up to $5.4 billion, according to a 2023 paper from researchers at George Washington University, the University of North Texas and Johns Hopkins University.
In the more market-oriented 1990s, city and state lawmakers voted to relax the rules. Landlords could then raise rents by 20% each time a tenant moved out. They could set their own rents once they rose past a certain threshold. For many buildings, owners could also raise monthly rents by $1 for every $40 in renovations, meaning a landlord who invested $60,000 in a vacant apartment could increase the rent by $1,500 on the next tenant.
See the full report on Bloomberg here:
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