Saturday, January 25, 2014

Arguments Against Rent Regulation Are Vacant of Facts

Read City Limits' article, "Arguments Against Rent Regulation Are Vacant of Facts."

Some say New York could relieve high rents by removing rent regulations. And other people say the world is flat.

Nobody is forced to own a rent-stabilized residential building, yet investors continue to buy these buildings. Why? Because rent-stabilized buildings make money. Large residential buildings are often owned by investor groups who care only about profit. If these groups could make more money elsewhere, they would. But it just so happens that New York's large rental buildings—even rent-stabilized—are a fabulous low-risk investment.
Of course if rent regulation were abolished these buildings would indeed be worth even more. But what is good for investors can make bad public policy. Increased rent would be a transfer of money from the lower and middle classes straight to the rich."