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Local iniquity

There was an interesting article in the New York Times magazine this week on the rise of extended stay hotels, which specialize in renting to a group within the working poor- people who have the cash for weekly rent, but cannot easily rent traditional apartments due to their poor credit ratings. This seems like a public necessity – but even here the long arm of big government seeks to smash affordability. The article notes that Columbus, Ohio “passed an ordinance that subjects them to many of the same regulations as apartments” because “The hotels had an unfair competitive advantage.” In other words, the city is basically rewarding landlords for turning out bad-credit tenants, and punishing the hotels who seek to house them.

Living Downtown: A Great Book for Market Urbanists

One long-forgotten housing option is residential hotels; a century ago, most renters lived in hotels and shared space with short-term tenants.  I just read a book, Living Downtown, about the rise and fall of residential hotels.  Rather than discuss them in detail I refer you to my amazon.com review. But here are two general thoughts: one reason Airbnb has been controversial is because it mixes long-term and short-term tenants.  But in the first half of the 20th century this was a common mixture. Until the 1920s, residential hotels were so unregulated that they included a wide range of places, from luxury hotels to vile flophouses where there was not even a mattress to sleep on.  But this mixture allowed even tramps to avoid sleeping on streets as they do now.

Over 200 Illegal Hotel Buildings in NYC

From AMNY: Report: 200 illegal hotels exist in the city There are more than 200 apartment buildings in the city that have been illegally converted to hotels, according to a report released Sunday, significantly reducing the number of rent-stabilized units available. … Illegal hotel operators frequently take advantage of tax loopholes designed to encourage the construction of residential units, according to Raskin. … Advocates are calling for increased penalties and changes in the zoning laws to clarify where hotels can and cannot operate. And today’s Sun: Crackdown Sought on Illegal Hotels in the City What does this tell us about the housing/hotel markets? It seems to me that tax structures (and probably zoning) favor housing, while there is significant unmet demand for hotel rooms. Nonetheless, there is definitely a shortage of built space in NYC, which could be better accommodated by loosening zoning restrictions on new development. Any other thoughts?

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