Nov 12, 2019
Last November, I wrote this article begging, pleading, importuning the New York City Council to not proceed with commercial rent regulation, but apparently at least some of them are not listening. After the actions from Albany concerning multifamily rent control a few months ago prices of multifamily in NYC have fallen at least 30% and possibly as much as 40%. The great sucking sound everyone heard was the sound of capital fleeing NYC multifamily; hence the price drop. And as many persons have pointed out, who now is going to put capital into NYC multifamily? And the answer is – eventually – the government. Indeed, it is not farfetched to conceive of the housing stock falling into disrepair due to the lack of capital, and as a result, the government being forced to take over a large portion of NYC’s housing stock in coming years.
Read more