New York Times: Questions of Rent Tactics by Private Equity
Rent-regulated apartments account for 57 percent of the total in the Bronx, 42 percent of the apartments in Brooklyn, 59 percent in Manhattan, 43 percent in Queens and 15 percent of those on Staten Island, the Guidelines Board says.
There’s a long way to go. Phasing out the free ride won’t be painless or popular, but New York needs to let the marketplace decide what rents should be and where people locate. By freeing-up units to the marketplace, much of the current supply constraints can be alleviated and rents won’t skyrocket as drastically on the market-rent payers. Not only that, the beneficiaries of the regulation have had a disincentive to relocate closer to better jobs and affordable areas since they don’t want to give up their sweet deal. Rent price control and the resulting supply constraint is more guilty than zoning restrictions in driving up market rents throughout New York.
Under the current regulations, some landlords pay more to their lenders than they collect from tenants of rent-regulated apartments. This helps explain the scale of the wealth transfer to each renter:
Vantage’s debt service is an estimated $1,098 monthly on each unit, almost 50 percent more than the average rent.
Learn more about the consequences of rent control in a informational series here: Rent Control Part 1: Microeconomics Lesson & Hoarding