Thank you for an excellent explication of the problems with Rent Control. But I'm not convinced that saying End Rent Control is the way to reform its many deficiencies. I'm no expert on New York Rent Control, and I've come late to this debate since it's only recently that I have embarked upon becoming a Housing Provider- my preferred pronoun for landlord.
I did my due diligence to educate myself about what 50 years of Rent Control has come to mean in Berkeley. I was aghast at the reality for an owner-occupant of a house/ parcel/property.
My hope is to grow a conversation about what it will take to incentivize our underutilized existing stock of housing capacity to be improved, developed to provide more homes in multiple social living configurations.
Rules like Just Cause Evictions and Tenant Relocation Fees may look good from the Democratic Socialists of America perspective, but they are "Oh Hell No's" for anyone contemplating sharing the once they start to hear the horror stories. Let's push for reforms wherever we can. I don't see that as bandaids, but as ways to advance the healing of our very sick housing supply situation.
Thank you for your comments and for being a Housing Provider. I know that Berkeley has rent control, just like St. Paul, and Jersey City, and many other areas besides NYC. Sadly, and improbably, it seems to be expanding. Harming Housing Providers, like yourself, and tenants.
As for ending it, I feel strongly that the necessary first step is an unflinching examination of its consequences. I have done that in my article, as have many other economists, analysts, and commentators.
After that first step, if enough people begin to agree, we can begin phasing it out. There is nothing good about rent control (as I have detailed). It must be ended, but I did not go into practical steps to do that.
It must be ended, but it should be phased out in steps. Existing tenants who have become addicted to artificially low rents should, in fairness, have some time to adjust.
But, in fairness to you (Housing Providers) and the many other current and future tenants harmed by rent control due to the housing shortage and artificially high market rents and home/condo prices it has caused, I am convinced that the adjustment period must be short.
It must be short so that vested interests do not re-emerge to clamor for the reinstatement of rent control. That pattern of partial decontrol and re-control has happened with depressing frequency here in NYC, most recently in 2019 when Mayor DiBlasio reinstated stricter rent control. That has caused major new problems now in NYC.
A good transition may involve the following, but I am open to suggestions:
* immediate vacancy decontrol
* a 3-5 year transition to full decontrol for everyone
During the transition, housing providers would be permitted to raise monthly rents each year by the larger of $200 or 20%, as an example.
Eventually, rents would reach market levels.
After 5 years, rent controls would be formally eliminated. From then on, all rents would be established by markets: by voluntary agreement between tenant and landlord.
The same way people buy shoes or cars or houses or jugs of milk.
No more shortages, better maintenance, higher quality housing, more construction… and *lower* market rents would be the result.
And it would be a just result. Instead of treating housing providers like slaves whose property is not theirs, it would respect their right of ownership and right to establish their terms for use of their property.
How to transition to a free market in housing is a big issue. But people need to understand the “why” first.
(As you mentioned, we also need to reform laws regarding evictions.)
I don't know if they're punishing landlord whose buildings are not up to code yet. In the ‘60s they reduced rent to zero if the apartments were not up to code. Then, the residents were trashing any repairs so they could keep rents at zero.
So many landlords walking away from their buildings saying that the city had to make building abandonment a crime.
I wonder how many of these mistakes Mamdani will duplicate.
Great article. Full of good points.
Thank you, Two in the Many!
I mean, I feel like I could have my own conversation with Claude and come to much of the same? Pangram gave it 93% AI generated.
Thank you for an excellent explication of the problems with Rent Control. But I'm not convinced that saying End Rent Control is the way to reform its many deficiencies. I'm no expert on New York Rent Control, and I've come late to this debate since it's only recently that I have embarked upon becoming a Housing Provider- my preferred pronoun for landlord.
I did my due diligence to educate myself about what 50 years of Rent Control has come to mean in Berkeley. I was aghast at the reality for an owner-occupant of a house/ parcel/property.
My hope is to grow a conversation about what it will take to incentivize our underutilized existing stock of housing capacity to be improved, developed to provide more homes in multiple social living configurations.
Rules like Just Cause Evictions and Tenant Relocation Fees may look good from the Democratic Socialists of America perspective, but they are "Oh Hell No's" for anyone contemplating sharing the once they start to hear the horror stories. Let's push for reforms wherever we can. I don't see that as bandaids, but as ways to advance the healing of our very sick housing supply situation.
Hi John,
Thank you for your comments and for being a Housing Provider. I know that Berkeley has rent control, just like St. Paul, and Jersey City, and many other areas besides NYC. Sadly, and improbably, it seems to be expanding. Harming Housing Providers, like yourself, and tenants.
As for ending it, I feel strongly that the necessary first step is an unflinching examination of its consequences. I have done that in my article, as have many other economists, analysts, and commentators.
After that first step, if enough people begin to agree, we can begin phasing it out. There is nothing good about rent control (as I have detailed). It must be ended, but I did not go into practical steps to do that.
It must be ended, but it should be phased out in steps. Existing tenants who have become addicted to artificially low rents should, in fairness, have some time to adjust.
But, in fairness to you (Housing Providers) and the many other current and future tenants harmed by rent control due to the housing shortage and artificially high market rents and home/condo prices it has caused, I am convinced that the adjustment period must be short.
It must be short so that vested interests do not re-emerge to clamor for the reinstatement of rent control. That pattern of partial decontrol and re-control has happened with depressing frequency here in NYC, most recently in 2019 when Mayor DiBlasio reinstated stricter rent control. That has caused major new problems now in NYC.
A good transition may involve the following, but I am open to suggestions:
* immediate vacancy decontrol
* a 3-5 year transition to full decontrol for everyone
During the transition, housing providers would be permitted to raise monthly rents each year by the larger of $200 or 20%, as an example.
Eventually, rents would reach market levels.
After 5 years, rent controls would be formally eliminated. From then on, all rents would be established by markets: by voluntary agreement between tenant and landlord.
The same way people buy shoes or cars or houses or jugs of milk.
No more shortages, better maintenance, higher quality housing, more construction… and *lower* market rents would be the result.
And it would be a just result. Instead of treating housing providers like slaves whose property is not theirs, it would respect their right of ownership and right to establish their terms for use of their property.
How to transition to a free market in housing is a big issue. But people need to understand the “why” first.
(As you mentioned, we also need to reform laws regarding evictions.)
I don't know if they're punishing landlord whose buildings are not up to code yet. In the ‘60s they reduced rent to zero if the apartments were not up to code. Then, the residents were trashing any repairs so they could keep rents at zero.
So many landlords walking away from their buildings saying that the city had to make building abandonment a crime.
I wonder how many of these mistakes Mamdani will duplicate.
He will duplicate many of them, and create his own. Sadly for New Yorkers.
Consider the land value tax (with assessment oversight provided by sortition!)