Earlier this month, the New York state legislature extended rent controls in New York City, continuing to set prices well below-market on many NYC apartments. The extension occurred only after an acrimonious political debate that included the NY City Council paying to send busloads of pro-rent control protestors to Albany.
Some landlords say they will not be able to stay in business because the cost of running an apartment complex is rising rapidly, thanks in part to massive new property tax increases in New York City. Rent control limits the ability of owners to pass along the tax increase, pushing their businesses into the red and degrading the the City’s housing stock.
CSE President Paul Beckner had the following comments:
“First the property tax increase, and now more rent control. This is completely misguided and harmful public policy.
“The fact that politicians are setting housing prices is outrageous. There’s no such thing as a free lunch. Rent controls lead to a housing shortage because there are no incentives to meet demand with new housing. Worse, many New Yorkers are forced to illegally sublet and pay market prices anyway.
“Rent control limits the quantity and quality of housing in New York City. It’s time for Governor Pataki to call for the repeal of rent controls altogether.”