Rent Control Laws Reduce the Availability of Housing
New York Real Estate Practice Group Leader Stuart Saft published a column in the New York Law Journal criticizing the state's rent control laws for stifling residential real estate development and exacerbating housing shortages. He explains that, although the intentions behind them may be good, rent control laws discourage developers and make existing real estate less profitable, which in turn hinders landlords in maintaining property and pursuing other projects. He argues that building more housing, not passing more laws, is the key to creating more affordable housing, saying a larger supply of units will force rents to go down. He cites a 1920s law that exempted new housing construction from property taxes and the subsequent boom in housing – 729,000 new houses and apartments, more than new builds in New York City from 1970-2020 combined – to support his points.
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