Publications
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The Challenges of Balancing Rent Stability, Fair Return, and Predictability under New York’s Rent Stabilization System
This brief lays out some of the challenges of balancing affordability and a reasonable rate of return; explains how New York City’s local governing body (the Rent Guidelines Board) incorporates building operating cost data to make rent adjustments; scans approaches used in other jurisdictions; and explores the potential consequences of eliminating rent increase mechanisms designed to be supportive of investment in repairing and improving the housing stock.
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Laboratories of Regulation: Understanding the Diversity of Rent Regulation Laws
Debates about rent regulation are not known for their nuance. The world tends to divide into fierce opponents and strong supporters. Moreover, debates rarely engage with the details of local ordinances, even though those details may significantly affect outcomes for tenants, landlords, and broader housing markets. This paper catalogs the multiplicity of choices that local policymakers must make in enacting and implementing rent regulation ordinances and consider the implications those choices may have for tenant protections and broader market outcomes. This paper then highlights the wide variety of regimes that jurisdictions with rent regulation have adopted in practice. It ends with a call for new empirical research to study the effects of different regulatory features.
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Gentrification Responses: A Survey of Strategies to Maintain Neighborhood Economic Diversity
This report examines strategies used by local governments to address rising housing costs and displacement of low-income households in gentrifying neighborhoods. To assist tenants at risk of displacement, the report details strategies to regulate the landlord/tenant relationship well as strategies to provide assistance for households that move. To create and preserve affordable housing, the report explores ways to use city-owned land and other resources strategically to promote affordable housing in areas where costs are on the rise. It also examines ways to harness the market, such as inclusionary zoning and linkage fees. The report is part of an ongoing series of work by the NYU Furman Center on gentrification, but is the first to provide an overview of policy responses to the effects rapidly rising rents.
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Low hanging fruit? Energy Efficiency and the Split Incentive in Subsidized Multifamily Housing
This paper explores whether and how the rules governing utility billing arrangements of subsidized housing programs impact energy consumption and exacerbate market failures that create incentives for both tenants and owners to be indifferent about their consumption levels. We test whether these incentives or dis-incentives result in higher energy consumption in subsidized properties than in comparable non-subsidized properties.The analysis focuses on three subsidized housing portfolios: Public Housing, Project-based Section 8, and the Low Income Housing Tax Credit (LIHTC). Using several multivariate regression models, we find that subsidized properties are associated with higher utility consumption than market-rate properties and, of the subsidized housing programs, Public Housing tends to consume the most energy.
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The Challenge of Rising Rents: Exploring Whether a New Tax Benefit Could Help Keep Unsubsidized Rental Units Affordable
The bulk of New York City’s housing stock that is affordable to low-income households is in multifamily buildings that receive no government subsidy to maintain low rents. Therefore, rising rents threaten the future affordability of this critical source of low-rent housing. The report considers whether the city could offer a benefit to protect affordability in this stock, and examines the feasibility of such a program for building owners and the city. The policy brief is third in the five-part series, Housing for an Inclusive New York: Affordable Housing Strategies for a High-Cost City. See the press release or read the key findings.
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Housing, Neighborhoods, and Opportunity: The Location of New York City’s Subsidized Affordable Housing
This report examines changes in the location and neighborhood characteristics of subsidized rental housing in New York City. The study shows that the distribution of subsidized rental units across New York City’s neighborhoods changed significantly between 2002 and 2011, not just as a result of new development, but also because of differential opt-out rates across neighborhoods. As a result, the city is losing affordable housing in the neighborhoods with the highest quality schools, lowest crime rates, and greatest access to jobs. Released in conjuction with the report, the Subsidized Housing Information Project (SHIP) is an online, searchable database of privately-owned, subsidized rental housing in New York City. View the press release or view the NYU Furman Center's infographic, New York City's Opt-Out Outlook.
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Profile of Rent-Stabilized Units and Tenants in New York City
In 2011, rent stabilized units comprised nearly one million units of housing in New York City--roughly 45 percent the city's rental housing stock. This report details the socioeconomic and demographic characteristics of the tenants who live in NYC's stabilized housing. It is an update to a 2012 brief, Rent Stabilization in New York City. It has been slightly expanded and re-released to inform the ongoing discussions about rent stabilization in New York City in advance of the June 23, 2014 Rent Guidelines Board vote to set the allowable increase for 2015 lease renewals.
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NYC Housing 10 Issues Series #5: Moderate-Income Household Subsidy
Housing is a substantial expense for New Yorkers, and has grown even less affordable in the last decade. As housing affordability becomes more of a strain for moderate- and middle-income households, many worry that those households might choose to leave the city altogether, which could undermine the city’s diversity and vitality. Moderate- and middle-income households are often not served by existing rental subsidies, though they may benefit from such a program. This brief examines the feasibility of a moderate-income housing subsidy.
The #NYChousing series, published in 2013 prior to the New York City mayoral election, identified 10 key affordable housing issues that were likely to confront the next mayor of New York City. The series aimed to inform the public about the policy tradeoffs by providing an objective analysis of the pros, cons, and questions related to key housing issues facing New York City. How the incoming New York City mayor would choose address the city's housing challenges in an environment of increasing needs, declining federal support, and a strengthening real estate market would have an enormous effect on the livability, diversity, and character of the city.
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How New York Housing Policies Are Different—and Maybe Why
This chapter describes New York's housing policies, exploring how and why they differ from those in Los Angeles and other large cities, and whether they have shaped how New York's housing market has weathered the recent downturn. The policies considered are public housing, in rem properties, other subsidized housing, rent control, housing allowances, city capital subsidies for construction and rehabilitation, special needs housing, local tax structures, and building codes. The chapter is organized as follows. Section I describes the city's housing policies and contrasts them with those in Los Angeles and other large cities in the U.S. Section II compares how the housing markets in New York and Los Angeles have fared during the recent downturn and considers whether differences in policies have shaped differences in outcomes. Section III explores some likely explanations for New York's set of housing policies, while the final section concludes.
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Rent Stabilization in New York City
The fact brief presents data and analyzes the characteristics of rent-stabilized units and their tenants in New York City. In 2011, New York City was home to 1,025,214 rent-regulated units, representing nearly half of the city’s total rental housing stock. The analysis is released in advance of the U.S. Supreme Court’s announcement on whether it will hear the case of Harmon v Kimmel, which challenges rent regulation laws in New York City and would have broad implications for the city’s rental market.
