6 ms·

How much extra do NYC renters pay from not building enough new supply? Or from rent control stifling the development of new supply?

busterarm 8y ago
Yes, the 0.7% of "rent controlled" units of NYC's available inventory that's shrinking by 2.5%/yr is totally stifling new supply. Feel free to tell us about how the rent stabilized units, which do compromise 1/3 of the inventory but in 3/4 of cases are within spitting distance (10%, and see 4% rent increases every 2 years) of market rate are keeping down supply though. Tell us about about how luxury condos in places like East New York, Edenwald, Brownsville, Morrisania & Crotona, and Hunts Point are going to increase affordable housing in NYC. I am very interested in learning about this.
- busterarm 8y ago
  Or instead, how about I tell you about my time working for a real estate tax certiorari firm in NYC and how landlords with multiple properties will deliberately underutilize their buildings for tax advantages. Occupancy maximums of 90% and one or multiple buildings deliberately at 0% occupancy (usually the primary residence of the landlords' extended family members for undeclared income) is the norm.
  - bogomipz 8y ago
    >"Or instead, how about I tell you about my time working for a real estate tax certiorari firm in NYC and how landlords with multiple properties will deliberately underutilize their buildings for tax advantages." When in the 1980s? Was Ed Koch the mayor? Market rate on a modest(500 sq foot plus) apartment is worth close to $3K a month or 36K a year. Please provide a citation this tax break which is worth more than 36K a year in 2018 for leaving a unit unoccupied?
    - busterarm 8y ago
      2000 and 2001.
      - bogomipz 8y ago
        So during the dot com boom when the city's economy was doing gang busters and the vacancy rate was less than 2%? I don't think so.
        busterarm 8y ago
        I can only tell you what I saw from the two seasons that I spent error-checking the tax returns they were sending to the IRS.
        busterarm 8y ago
        https://www.huduser.gov/portal/publications/pdf/NYC-comp-16.pdf https://www.huduser.gov/portal/publications/pdf/NYC-comp-16.... Also, this data does not agree with you. Lowest vacancy rate of any borough was 2.3% in Queens in 2000 and between 3.1 and 4.2 in every other borough. The economy is doing even better in NYC right now and the vacancy rate is over 11% right now. https://www.6sqft.com/nearly-250000-nyc-rental-apartments-sit-vacant/ https://www.6sqft.com/nearly-250000-nyc-rental-apartments-si... Hrmmm....
        bogomipz 8y ago
        Nice cherry picked data. That's a HUD report. Try checking the NYC Rent Guidelines Report for accurate data: Manhattan 2.57 and Queens 2.11 [1] That's from page 2. It also shows a -25% and -35% change for vacancy rates from 3 years prior for those two boroughs. And you can't seem to produce any citation for your assertion about a piece of the tax code that allows landlords to make more money from empty apartments than renting them at market rate. [1] https://www1.nyc.gov/assets/rentguidelinesboard/pdf/hsr00.pdf https://www1.nyc.gov/assets/rentguidelinesboard/pdf/hsr00.pd...
        8y ago
davidgerard 8y ago
Whataboutery is probably not a great argument.
bogomipz 8y ago
>"Or from rent control stifling the development of new supply?" Rent controlled apartments were 1% of the total housing stock in NYC as of 4 years ago. That number has only decreased since then. So not at all.

busterarm 8y ago

Yes, the 0.7% of "rent controlled" units of NYC's available inventory that's shrinking by 2.5%/yr is totally stifling new supply. Feel free to tell us about how the rent stabilized units, which do compromise 1/3 of the inventory but in 3/4 of cases are within spitting distance (10%, and see 4% rent increases every 2 years) of market rate are keeping down supply though. Tell us about about how luxury condos in places like East New York, Edenwald, Brownsville, Morrisania & Crotona, and Hunts Point are going to increase affordable housing in NYC. I am very interested in learning about this.

busterarm 8y ago
Or instead, how about I tell you about my time working for a real estate tax certiorari firm in NYC and how landlords with multiple properties will deliberately underutilize their buildings for tax advantages. Occupancy maximums of 90% and one or multiple buildings deliberately at 0% occupancy (usually the primary residence of the landlords' extended family members for undeclared income) is the norm.
- bogomipz 8y ago
  >"Or instead, how about I tell you about my time working for a real estate tax certiorari firm in NYC and how landlords with multiple properties will deliberately underutilize their buildings for tax advantages." When in the 1980s? Was Ed Koch the mayor? Market rate on a modest(500 sq foot plus) apartment is worth close to $3K a month or 36K a year. Please provide a citation this tax break which is worth more than 36K a year in 2018 for leaving a unit unoccupied?
  - busterarm 8y ago
    2000 and 2001.
    - bogomipz 8y ago
      So during the dot com boom when the city's economy was doing gang busters and the vacancy rate was less than 2%? I don't think so.
      - busterarm 8y ago
        I can only tell you what I saw from the two seasons that I spent error-checking the tax returns they were sending to the IRS.
      - busterarm 8y ago
        https://www.huduser.gov/portal/publications/pdf/NYC-comp-16.pdf https://www.huduser.gov/portal/publications/pdf/NYC-comp-16.... Also, this data does not agree with you. Lowest vacancy rate of any borough was 2.3% in Queens in 2000 and between 3.1 and 4.2 in every other borough. The economy is doing even better in NYC right now and the vacancy rate is over 11% right now. https://www.6sqft.com/nearly-250000-nyc-rental-apartments-sit-vacant/ https://www.6sqft.com/nearly-250000-nyc-rental-apartments-si... Hrmmm....
        bogomipz 8y ago
        Nice cherry picked data. That's a HUD report. Try checking the NYC Rent Guidelines Report for accurate data: Manhattan 2.57 and Queens 2.11 [1] That's from page 2. It also shows a -25% and -35% change for vacancy rates from 3 years prior for those two boroughs. And you can't seem to produce any citation for your assertion about a piece of the tax code that allows landlords to make more money from empty apartments than renting them at market rate. [1] https://www1.nyc.gov/assets/rentguidelinesboard/pdf/hsr00.pdf https://www1.nyc.gov/assets/rentguidelinesboard/pdf/hsr00.pd...
        8y ago

davidgerard 8y ago

Whataboutery is probably not a great argument.

bogomipz 8y ago

>"Or from rent control stifling the development of new supply?" Rent controlled apartments were 1% of the total housing stock in NYC as of 4 years ago. That number has only decreased since then. So not at all.