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Old 08-11-2019, 07:07 PM
DrDeth is online now
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https://psmag.com/economics/in-defense-of-rent-control
But a comprehensive review of literature by New York housing lawyer Timothy Collins found that the received wisdom regarding rent regulations is overly simplistic—partially because hard ceilings on rents are often imagined, while the reality is more often (as in New York’s case) a more measured approach meant to discourage landlords from dramatically raising rents and displacing tenants.

Collins argues that New York’s two largest building booms took place during times of strict rent controls: the 1920s and the post-war period between 1947 and 1965. ...

“New York’s moderate rent regulations have had few, if any, of the negative side effects so confidently predicted by industry advocates,” Collins writes. “More important, rent regulations have been the single greatest source of affordable housing for middle‐ and low‐income households. I should note that many of these findings came as a surprise to me. When I first joined the Rent Guidelines Board staff in 1987, I believed that rent regulations in New York City probably did have some long‐term harmful effects. I was proven wrong.”

Outside the city, one economist found that housing construction in New Jersey fell by 52 percent in cities that enacted rent control regulations in the early 1970s—but fell 88 percent in those that didn’t. ....
Collins also found that all the apartments that experts expected to open up with the introduction of rent regulations did not materialize after rent control was removed from Boston. In 1994, real estate interests in Massachusetts organized a statewide referendum to end rent control—which only existed in Boston, Cambridge, and Brookline—and just barely won. But Census data shows that Boston’s vacancy rate was four percent before the regulations were phased out and 2.9 percent four years after they were done away with—scrapping rent control had, at the very least, not generated a measurable effect on apartment availability. The median price for a two-bedroom apartment doubled in the meantime.