NY Multifamily Rent Regulations
The building stock in New York City is already old and undesirable compared to newer cities. With new rent regulations expected to pass by Saturday, the government will effectively create an environment of deteriorating housing stock. The new regulations severely limit the incentives of landlords to re-invest into their rent regulated housing by not allowing them to re-capture most of this investment through future rental increases. Further, if a regulated tenant made more than $200K per year a landlord could de-regulate a unit, not anymore, which I am not sure how this even protects the middle class. Finally, the gentrification of NYC's neighborhoods was caused by massive private investment into the places like Williamsburg, Long Island City, The East Village and Bed Stuy. With no incentive to re-invest into their real estate, I see this trend of safer, revitalized neighborhood transformations coming to a screeching halt.
DXE Properties has made a commitment to invest in the South East where incredible amounts of investment, population and jobs are migrating.
We have a bunch of NY friends, owners, investors that have been preparing for this to pass and they are not happy.
What is your take?