What is the cost of rent regulations in New York City?
A recent analysis of the impact of decontrol in Cambridge may offer some clues. According to economists at MIT, property values in Cambridge increased by $1.8 billion in the 10-year period after decontrol in 1994. Interestingly, property value gains were greater for property that had never been controlled than for previously controlled property.
Since there are vastly more rent regulated properties in New York City than in Cambridge, $1.8 billion may be a fraction of the increased property value to garnered by decontrol in New York.
Any economist out there want to extrapolate the potential tax revenue to be gleaned by decontrol in NYC?
– Jack Freund, Executive Vice President, Rent Stabilization Association
(Views and opinions expressed are those of the author and do not necessarily reflect the policy or position of the RSA.)
The complete study can be accessed by clicking here.