top | item 10540320

(no title)

psaintla | 10 years ago

You say that like it's a simple thing, it's not. Here is a concrete example of what I mean. In NYC rent control/stabilization artificially limits the supply and increases the cost of non-stabilized units. If rent control was eliminated rental values across the city would plummet in non-stabilized units. As a result property values in non-stabilized buildings would plummet as well. You could easily trigger a panic as landlords try to sell off property that is declining in value. There are unintended side effects to changing laws, it's never as simple as just fixing a legal restriction.

discuss

order

Zach_the_Lizard|10 years ago

I fail to see how ending rent control would hurt property values. If anything, it should increase them; now there is not a multigenerational pseudo property right that can be passed on. You can see this in listings; rent controlled units sell for way below normal prices because of the threat that the tenant can invite a relative to stay and then pass on their sweet deal for another generation, all on the property owners' dime.

Rent stabilization is similar. It would raise the property values in rent stabilized buildings. It would also raise rents in the rent stabilized buildings.

Where it would hurt is market rate apartments. They would likely see rents fall over time given the market is no longer bifurcated.

To ease the transition, a phase out would probably be in order, but given that a phase out can be terminated it would probably have to be one big shove out the door.

pavel_lishin|10 years ago

> If rent control was eliminated

Do you mean rent control and rent stabilization? As far as I can tell, rent-controlled units make up something like 2% of all units.

eric_h|10 years ago

> rent-controlled units make up something like 2% of all units

True, but that is actually a great deal of lost income for the landlords in those cases. Anecdotally, of the number of people I've heard of living in rent controlled apartments, I've never heard of rent over $500, including 2 and 3 bedroom apartments in primo neighborhoods. Numbers like that are just _absurd_ given what I'm paying for my 1 bedroom in an "up and coming" neighborhood in queens

psaintla|10 years ago

Yes, I should have been more clear. I meant both.