Hacker News new | ask | show | jobs
by tvchurch 2975 days ago
How much extra do NYC renters pay from not building enough new supply?

Or from rent control stifling the development of new supply?

3 comments

Yes, the 0.7% of "rent controlled" units of NYC's available inventory that's shrinking by 2.5%/yr is totally stifling new supply.

Feel free to tell us about how the rent stabilized units, which do compromise 1/3 of the inventory but in 3/4 of cases are within spitting distance (10%, and see 4% rent increases every 2 years) of market rate are keeping down supply though. Tell us about about how luxury condos in places like East New York, Edenwald, Brownsville, Morrisania & Crotona, and Hunts Point are going to increase affordable housing in NYC. I am very interested in learning about this.

Or instead, how about I tell you about my time working for a real estate tax certiorari firm in NYC and how landlords with multiple properties will deliberately underutilize their buildings for tax advantages.

Occupancy maximums of 90% and one or multiple buildings deliberately at 0% occupancy (usually the primary residence of the landlords' extended family members for undeclared income) is the norm.

>"Or instead, how about I tell you about my time working for a real estate tax certiorari firm in NYC and how landlords with multiple properties will deliberately underutilize their buildings for tax advantages."

When in the 1980s? Was Ed Koch the mayor?

Market rate on a modest(500 sq foot plus) apartment is worth close to $3K a month or 36K a year. Please provide a citation this tax break which is worth more than 36K a year in 2018 for leaving a unit unoccupied?

2000 and 2001.
So during the dot com boom when the city's economy was doing gang busters and the vacancy rate was less than 2%? I don't think so.
https://www.huduser.gov/portal/publications/pdf/NYC-comp-16....

Also, this data does not agree with you. Lowest vacancy rate of any borough was 2.3% in Queens in 2000 and between 3.1 and 4.2 in every other borough.

The economy is doing even better in NYC right now and the vacancy rate is over 11% right now. https://www.6sqft.com/nearly-250000-nyc-rental-apartments-si... Hrmmm....

I can only tell you what I saw from the two seasons that I spent error-checking the tax returns they were sending to the IRS.
>"Or from rent control stifling the development of new supply?"

Rent controlled apartments were 1% of the total housing stock in NYC as of 4 years ago. That number has only decreased since then. So not at all.

Whataboutery is probably not a great argument.