As paul krugman wrote in the new york times in 2000, rent control is “among the best-understood issues in all of economics, and—among economists, anyway—one of the least controversial” economists reckon a restrictive price ceiling reduces the supply of property to the market. The median rent of all rental housing in new york is approximately $352 a month the amount of money it costs to operate rental housing owned by the city exceeds that amount by approximately $20, somewhere in the range of $370 to $375.
For the state of new york, rent control applies to building constructed before february 1947 in 51 municipalities including new york city generally, the amount of tenants under rent control is getting smaller each year. Rent control laws have stayed on the books for decades in new york because of an inadequate supply of decent, affordable housing the worsening in the rental market led to the enactment of the rent stabilization law of 1969, which aimed to help increase the number of available rental units. As the national multi housing council (nmhc) argues, rent control discourages people from moving if a tenant is in a rent-controlled unit, especially in a large and expensive city, such as new york or san francisco, he might, for obvious reasons, want to stay in it.
In spite of these regulations, new york city has some of the highest rent rates in the country, if not the world in other areas, such as cambridge, massachusetts, where rent controls were in place between 1971 and 1994, rent control has given way to deregulation. Compared to standard rent control, rent stabilization is a more flexible option that’s only available in new york city and in nassau, rockland, and westchester counties outside of the city under this program, a city board comes together every year and figures out how much landlords should charge their tenants.
There are over 18 million units of rental housing owned privately 12 million of those are regulated either by rent control or rent stabilization peat marwick main & company, a big-eight accounting firm, has for the first time quantified what the tax loss is to the city of new york annually because it chooses to regulate rents of higher-income people: $370 million a year. The desire for rent control is easy to understand, but critics say it can do more harm than good 9/11 ceremony held in new york city on 17th anniversary of attack rent control pros and. In new york city, generally it applies to buildings of six or more units built between february 1, 1947, and december 31, 1973, while outside of the city, it applies to non-rent-controlled apartments in buildings of six or more units built before january 1, 1947. Among the most well-known rent-control regulations are in place in new york city in spite of these regulations, new york city has some of the highest rent rates in the country, if not the world in other areas, such as cambridge, massachusetts, where rent controls were in place between 1971 and 1994, rent control has given way to deregulation.
New york city has two forms of rent regulation: rent control and rent stabilization rent control typically applies to buildings constructed before february 1947, while rent stabilization covers buildings constructed after february 1957 and before 1974, as well as buildings containing at least six units removed from rent control. Rent control removes the efficiency from the market, since a portion of tenants are able to rent buildings at a price below that equilibrium in a market such as new york where there are effectively more tenants than apartments, decreasing the supply of available apartments makes prices go up. Investment analysis below, the pros and cons of rent control regimes, which now exist in about 40 countries are reviewed by the global property guide as an example, the allowable rent increase for rent stabilized apartments in new york city is 275% for leases lasting for one year with heating provided by the landlord landlords can.
If you want to read more about rent control, here is the story of a challenge in nyc that involved the supreme court for anti- price gouging laws, here is what nj governor christie is enforcing and here is a criticism.