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Theoretically, this shouldn't affect rental prices. Demand is dictated by the number/wealth/desperation of people wanting to rent in NY. Supply is more-or-less
by danohu 10y ago
Theoretically, this shouldn't affect rental prices.
Demand is dictated by the number/wealth/desperation of people wanting to rent in NY. Supply is more-or-less constant (except for new-build, which is excluded from this).
So this doesn't affect rental prices, just moves money from the landlord's pocket into the city government. Sounds like a good idea to me.
- bradleyjg 10y agoThat might be true if they weren't distortionary. But because they are dramatically different for renters and owners they distort behavior and so would be expected to affect rental prices.
- tsaoutourpants 10y agoAuthor here. There is indeed a supply and demand equation here, because demand is not constant. Market forces would drop rents if taxes dropped.