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Actually, the exact opposite of what you said is the solution. Allow stronger property rights. Allow developers to build up using simple real estate economics -
by cpursley 14y ago
Actually, the exact opposite of what you said is the solution. Allow stronger property rights. Allow developers to build up using simple real estate economics - for residential and commercial projects. Rent control is the quickest way to turn one of America's best cities into vast slum.
I'm a commercial real estate appraiser. Real estate already has very low margins (10% - 20% for strong operations) - how do you expect the property owner to maintain the property (expenses, taxes, mortgage) and make enough of a profit to consider holding onto said property? Let's turn that around - you presumably like your job. Now, take a 40% pay cut - can you still afford to keep your job?
- jasonwocky 14y ago> Rent control is the quickest way to turn one of America's best cities into vast slum. NYC has rent control, and it's hardly a vast slum. And as a counter-dynamic, overbuilding and its associated crime rate increase is another way to turn a city into a slum. Few things breed crime like abandoned housing.
- cpursley 14y agoNew York is able to build up, which helps. But overall, the NYC rent control is considered a failure by those who it is intended to help.
- cynicalkane 14y agoNYC was a vast slum during a time when rent control, public housing, and social policy were a much bigger deal than they are now.
- toomuchtodo 14y agoIn what world are 10-20% margins low? Perhaps the problem is with real estate operators having unrealistic expectations towards real estate appreciation rates and profitability. Grocery stores average a 2.5-3% profit margin, and I'd consider them a pretty essential business (because, you know, you have to eat).