Sam: You must read this for the facts

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Sam: You must read this for the facts

Posted by Ken on December 17, 2000 at 02:57:04:
In Reply to: Re: he asked about rent control, probably in NYC posted by SamE on December 16, 2000 at 20:44:51:
Sam, you are correct that there are comparitively few rent controlled apartments in the city. Many people confuse rent control and rent stabilization; or they use either term to connote the generic term, rent regulation. Actually it is incredible that over 50,000 apartments still rent for next to nothing under rent control, becuase those controls were an emergency temporary measure enacted during World War II.
Sam, you are on to something when you say landlords are "witholding" from the rental market more than 50,000 units (I can't confirm this number). Now, Sam, think. Why would a landlord withdraw an apartment from the market that could be making him big money if he rented it ? Due to rent regulations. Perhaps he has other long term plans for the building and does not rent the apartment since he would be practially bound forever to continue renewing a stabilized tenant's lease. Perhaps he doesn't want to deal with the bureacracy. Whatever the reason, the effect is the same: apartments are withdrawn from the rental market.
Rent regulations have had the effect of withdrawing thousands of otherwise good apartments from the rental market permanently, both due to witholding, and more commonly, to coop and condo conversions. The effect of withdrawing thousands of apartments from the market is to drive up the prices of remaining apartments even higher. Which is exactly what has happened in New York.
The next time you hear a "tenant advocate" support rent controls, consider just what he is supporting. A system that has lead to the highest housing prices in the country and a perenial housing shortage. The REAL housing advocates support total freedom from zoning/rent regulation laws for the simple reason that when more apartments can are on the market, rents go DOWN.
: : What you describe happens more often than you might think. The apartments in question are essentially removed from the rental market as prospective tenants who aren't relatives or "insiders" cannot rent them. Some landlords go so far as to hire detectives to investigate exactly where a leaseholder resides and attempt to reclaim the apartment in court.
: : The result of all this, of course, is to restrict the supply of apartments, which drives up the price of those non-regulated apartments
: Wrong: the impact of the less than 50,000 rent controlled apartments is minimal, if not non-existant in a market of over 2 million rental units. In fact, landlords withhold more apartments from the market than that! According to the 1999 survey by the Feds: U S Census Bureau.

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: Sam, you are correct that there are comparitively few rent controlled apartments in the city.  Many people confuse rent control and rent stabilization; or they use either term to connote the generic term, rent regulation.  Actually it is incredible that over 50,000 apartments still rent for next to nothing under rent control, becuase those controls were an emergency temporary measure enacted during World War II.

: Sam, you are on to something when you say landlords are "witholding" from the rental market more than 50,000 units (I can't confirm this number).  Now, Sam, think.  Why would a landlord withdraw an apartment from the market that could be making him big money if he rented it ?  Due to rent regulations.  Perhaps he has other long term plans for the building and does not rent the apartment since he would be practially bound forever to continue renewing a stabilized tenant's lease.  Perhaps he doesn't want to deal with the bureacracy.  Whatever the reason, the effect is the same: apartments are withdrawn from the rental market.  

: Rent regulations have had the effect of withdrawing thousands of otherwise good apartments from the rental market permanently, both due to witholding, and more commonly, to coop and condo conversions.  The effect of withdrawing thousands of apartments from the market is to drive up the prices of remaining apartments even higher.  Which is exactly what has happened in New York.

: The next time you hear a "tenant advocate" support rent controls, consider just what he is supporting.  A system that has lead to the highest housing prices in the country and a perenial housing shortage.  The REAL housing advocates support total freedom from zoning/rent regulation laws for the simple reason that when more apartments can are on the market, rents go DOWN. 


: : : What you describe happens more often than you might think.  The apartments in question are essentially removed from the rental market as prospective tenants who aren't relatives or "insiders" cannot rent them.  Some landlords go so far as to hire detectives to investigate exactly where a leaseholder resides and attempt to reclaim the apartment in court.

: : : The result of all this, of course, is to restrict the supply of apartments, which drives up the price of those non-regulated apartments

: : Wrong: the impact of the less than 50,000 rent controlled apartments is minimal, if not non-existant in a market of over 2 million rental units.  In fact, landlords withhold more apartments from the market than that! According to the 1999 survey by the Feds: U S Census Bureau.


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