Miscellaneous / Rent Regulation In NYC
Rent Regulation In NYC
Autor: yazsheq 24 April 2012
Words: 260 | Pages: 2
Rent regulation is put in place by a government to limit rents or place a frequency and degree of rent increases in residential rental housing. Rent regulation encompasses both rent control and rent stabilization.
Rent control takes places when a maximum, or a ceiling, is imposed by a government on the amount a landlord can charge a tenant. Rent stabilization, on the other hand, means that a rent increase may not exceed a specified amount set by the government (NYC Rent Guidelines Board).
Rent regulation was introduced in New York City (“NYC”) in the 1940s and has always been a controversial issue since; often being described as well-intended, but ill-targeted. While limiting the rental revenues of landlords and investors, rent regulation mainly aims at providing affordable housing options to low- and moderate income households, while also protecting them from rent hikes that might ultimately result in their displacement (Roistacher 2010).
This paper reviews the arguments pro and contra rent regulation in general and also looks at the situation of rent regulation in NYC.
2. Pros and Contras of Rent Regulation
The overarching and undisputed justification for rent regulation as a housing policy is the protection of people’s right to shelter by making rental housing (more) attainable and affordable. However, the actual impact on the housing market, its suppliers and its consumers, is not as clear cut. This is an overview of some of the main arguments literature in favor of rent regulation:
• Rent regulation, especially when applied to low-income housing, increases the social welfare (Raess and von Ungern-Sternberg 2002) and social stability of tenants....