Rent Freezing in New York City

Rent control is a price ceiling on rental housing. There are many drawbacks to rent control: shortages caused by price being below marginal profit, reduces quality of homes, increases the cost in homes, etc. For the second year in a row, New York City is experiencing rent freeze, meaning that landlords cannot raise the rent for tenants of apartment buildings. On June 27, 2016, the board set rents for over one million rent-stable homes in the city. This was enacted in order to stabilize the price of homes in New York which have been on a constant rise since the demand for housing is so high. The board increased 2-year leases by 2%, causing tenants to be aggravated at the price increase of their homes. While tenants were unhappy, landlords were as well, feeling that the increase was too low. The article illustrates how tenants are unhappy with the short-term effects of the price increase, but in the long run will cause more stability in the housing market.

1 Comment »

  1. guzickl Said,

    December 9, 2016 @ 2:44 am

    I really enjoyed how this showed both sides of the market, and how each can walk away unhappy even though the action taken was the best for the market as a whole. Is there any other alternative that would make either side happier and keep the market as stable as a 2% increase would?

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