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| Re: I Am Not Panicking (1975917) | |||
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Re: I Am Not Panicking |
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Posted by AlM on Tue Jan 9 11:59:02 2024, in response to Re: I Am Not Panicking, posted by Spider-Pig on Tue Jan 9 10:56:40 2024. Rents on new construction are occasionally regulated. There are tax incentives whereby landlords get a tax break for agreeing to participate in rent stabilization for new construction.Any voluntary regulation should not have an impact on supply, except perhaps increasing supply. If an entity chooses to build a building and accept regulation, what does that mean? - Maybe they would not have built the building in the absence of the incentives and the regulation. In that case, the regulations INCREASED supply, an outcome totally contrary to that usually made about rent regulations. - Maybe they would have built the building anyway. In that case, the regulations had no effect on supply. So all in all, the argument that rent regulation reduces supply is a very weak one, because it does not work for new construction. It only works if regulation is so onerous as to induce abandonment, which is a difficult argument to make in NYC given how little vacant land and unoccupied buildings there are. |
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