Want Cheaper Rent? End Rent Control

Want Cheaper Rent? End Rent Control

The Supreme Court may have a chance this year to determine whether rent control is constitutional or whether it represents a “taking” without just compensation. A topic worthy of debate—but in my view, there are sound economic reasons rent control (like many government regulations), however well intentioned, is woefully misguided. To see why, let’s return briefly to Economics 101.

Anyone who took an economics class will likely have (possibly painful) flashbacks in examining Exhibit 1, which shows a generic supply and demand graph, with price and quantity on the x- and y-axes, respectively. Basic economic theory expects a supply curve to slope upward because the higher the price a good’s provider can obtain, the more he’s willing to supply. On the flip side, demand for most goods is downward sloping because, on average, consumers are less-inclined to consume higher quantities of a good the more it costs. The intersection of the two determines the price and quantity the market supports (commonly known as equilibrium).

Read the rest of this article in the PDF format:

Attachments:
Download this file (Reality Check -Want Cheaper Rent- End Rent Control..pdf)Want Cheaper Rent? End Rent Control[ ]100 Kb

Who Really Benefits from New York City’s Rent Regulation System?

Who Really Benefits from New York City’s Rent Regulation System?

This report examines New York City’s rent stabilization system and estimates the effects of total or partial deregulation. It finds that rent stabilization provides little benefit to residents of the outer boroughs and the lower and middle-income neighborhoods of Manhattan, while providing a substantial subsidy only to the residents of the relatively affluent areas of Lower and Mid-Manhattan. 

The report also finds rent increases for stabilized housing following deregulation would be significantly less than generally expected. Because residents of neighborhoods outside of the affluent part of Manhattan are not receiving significant subsidies, their rent increases would be minimal to non-existent. In the affluent areas of Lower and Mid-Manhattan, the substantial expansion of the unregulated housing market would create downward pressure on rent levels, making rent increases for stabilized housing less than might be expected.

Read the rest of this article in the PDF format:

Rent Regulation -- Beyond the Rhetoric

Rent Regulation -- Beyond the Rhetoric

In New York City more than one million housing units, representing more than half the private rental market and one‐third the total housing stock, are subject to rent regulation. This scale of regulation is unique among American cities and is highly controversial.

Proponents claim rent regulation protects affected tenants from otherwise likely excessive rent increases in New York’s tight housing market and helps make housing affordable for low‐ and middle‐income households who otherwise could not live in their own home in New York City. Critics claim the regulations give substantial benefits to upper‐income households who could afford unregulated rents, cause rents to be higher among unregulated units than would otherwise be the case, encourage some families to stay in apartments longer than they otherwise would, curb construction of new housing, discourage landlords from properly maintaining regulated units, and lower property values of buildings with regulated units, thereby depriving the City of New York of property tax revenue.

Current rent regulations trace their origins to federal price controls imposed on the city’s rental housing market in 1943 during World War II. The federal rules applied to housing built before February 1947. In 1951 New York State opted to assume the controls on the pre‐1947 housing stock on grounds that the local housing market continued to experience a low vacancy rate. In 1969 rent regulation in a modified form (rent stabilization) was applied to housing built after 1946. The rules that applied to both older and newer housing have been altered several times since, with periods of full or partial vacancy decontrol and other modifications. Nevertheless, the justification for all rent regulation remains the tight local housing market. The legal basis for current rent regulations is the continuation of a vacancy rate of 5 percent or below as an indication of a housing “emergency.”

Read the rest of this article in PDF format:

 

Attachments:
Download this file (REPORT_RentReg_06022010.pdf)Beyond the Rhetoric[ ]860 Kb

For Faye Dunaway, Real-Life Role in Housing Court

For Faye Dunaway, Real-Life Role in Housing Court

She was a brazen bank robber in “Bonnie and Clyde,” the mysterious Evelyn Mulwray in “Chinatown“ and a scheming television executive in “Network,” for which she won an Oscar.

Now Faye Dunaway is a defendant in case No. 76667/11 in Manhattan housing court, just another rent-stabilized tenant facing eviction.

In a lawsuit filed Tuesday, her landlord claims that Ms. Dunaway, who pays $1,048.72 a month for a one-bedroom walk-up apartment in a century-old tenement building on East 78th Street, does not actually live there, but rather lives in California. The suit also names her son, Liam Dunaway O’Neill, whose father is the photographer Terry O’Neill, as a subtenant in the apartment.

As proof, the landlord, unnamed in court papers, states that Ms. Dunaway owns a home in West Hollywood, and has her voter and automobile registrations there. The suit also cites three moving violations she received in California from May 2009 to December 2010.

Read the rest of this article in the PDF format:

Sample Rent Regulated Tenant Article 1

Some more testing text.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut aliquam urna vitae nibh ullamcorper, et congue purus elementum. Suspendisse malesuada condimentum nibh. Etiam sodales egestas elit, vitae dapibus magna laoreet eget. Phasellus et bibendum tortor. Donec non lacus convallis, volutpat felis et, eleifend est. Nunc a nisi massa. Morbi ut fermentum lorem, ut porta enim. Vivamus gravida est sodales, convallis dui a, scelerisque felis. Phasellus quis sollicitudin sapien, sed vehicula lorem. Maecenas vitae urna eu arcu lobortis sollicitudin. Nunc pulvinar, ante bibendum condimentum pellentesque, justo justo iaculis diam, vitae tempor nisl nibh sed nisl.

 

Etiam et dui at lectus consectetur gravida auctor id mi. Integer et elementum mauris. Morbi fringilla pulvinar nulla, eget laoreet libero aliquam non. Donec neque nibh, scelerisque at facilisis a, fringilla vitae est. Integer vulputate tincidunt luctus. Interdum et malesuada fames ac ante ipsum primis in faucibus. In eu sem leo. In ut lectus ut est consequat ultrices non ut ligula. Aliquam aliquet a ligula in vulputate. Ut quis massa dictum, gravida metus vel, accumsan metus. Vivamus vehicula sodales tortor, non facilisis libero. Donec faucibus aliquet leo a elementum. Pellentesque nibh nibh, porttitor nec dolor ut, elementum sagittis ipsum. Pellentesque nisi sapien, euismod a placerat placerat, semper in quam. Phasellus tincidunt eros libero, sed pretium diam luctus sed. Proin arcu leo, mattis in egestas quis, rhoncus sed enim.

 

Donec nec ligula consectetur, rutrum purus vitae, porta magna. Vivamus ac nunc porttitor libero porta scelerisque. Etiam quis ante ut odio rutrum interdum ut sit amet risus. Nulla arcu est, molestie in vestibulum ac, venenatis eget sem. Aliquam dignissim lorem eu lectus aliquam tincidunt. Ut laoreet ultricies augue posuere sagittis. Curabitur egestas nisi elit, non aliquam diam varius ac. Donec lacinia pulvinar condimentum. Aenean sed neque tristique, fringilla ante at, aliquet nisl. Maecenas sodales lacinia nibh, non posuere dolor eleifend id. Praesent mollis luctus felis, nec tincidunt nulla condimentum non. Morbi convallis felis eget orci euismod, non egestas libero fringilla.

 

Aenean vitae cursus justo. Phasellus eros lacus, laoreet eu elementum eu, fermentum vitae leo. Donec porta magna vel odio molestie eleifend vitae eu nunc. Sed accumsan erat at tellus vestibulum fermentum. Proin consectetur sapien id eros adipiscing, et aliquam velit viverra. Morbi turpis velit, suscipit id ipsum ut, venenatis rhoncus tellus. Vestibulum rutrum, neque eu bibendum condimentum, nulla ipsum consequat eros, non cursus enim ligula nec leo. Fusce neque metus, elementum tempor turpis vel, malesuada fermentum sem. In ipsum mauris, fermentum vitae felis id, auctor fermentum mi. Aenean sed tincidunt libero.