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> Rent control isn't the reason you can't build. Can you explain why builders are paying rent control tenants to leave [0]? And where does the payoff money com
by itake 3y ago
> Rent control isn't the reason you can't build.
Can you explain why builders are paying rent control tenants to leave [0]? And where does the payoff money come from? Future rent? Future home buyers?
[0] - https://www.nytimes.com/2015/12/25/nyregion/new-york-builders-paying-huge-buyouts-to-tenants-in-their-way.html https://www.nytimes.com/2015/12/25/nyregion/new-york-builder...
- vkou 3y agoWhat % of a development's budget goes to this? I expect it to be less than 2% on the average, across the whole city. It's not the first, second, or even fifth reason for the supply-side shortage. The costs are passed on to the buyers/renters, and despite that, demand continues to massively exceed supply.
- itake 3y agoRent control is amazing deal for old people: Multi-million dollar payouts and insanely cheap rent, but these benefits are paid by the future generation of residents. As you said, eliminating rent control would lower prices by 2% on average (saving future residents millions) and helps projects be built faster (by removing red tape).