Many people look at rent-stabilized housing and see the embodiment of their particular fears – either landlords squeezing cash-strapped tenants or wealthy renters scoring a bargain by mooching off regulated rents. Both these problems do exist, to varying degrees, but the biggest issue policymakers need to confront today is that recent changes to rent stabilization and the economy are threatening one of the most important sources of housing for low-income New Yorkers.
Some people say that sky-high rents are enabling New York City landlords to rake in profits on rent-stabilized buildings, while others say that its becoming impossible for landlords to operate rent-stabilized housing because rising expenses are outpacing revenues.
Both statements are true – but they’re referring to different buildings. Unfortunately, the way rent laws are administered has blurred distinctions among the heterogenous set of rent-stabilized buildings in New York. As a result, some buildings are doing fine financially while many are in severe distress. If we fail to heed the increasingly clear warning signals, we can expect dire consequences for the city’s ability to house lower-income residents stably and affordably.
