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Monopolistic Competition: Retail Industry Essay

663 words - 3 pages

New York Apartment Price Controls – An Article Review
Rent controls began in New York City in November 1943, when rent for all units in the city were frozen at their March 1943 levels as part of the U.S. Emergency Price Act of 1942 (Gyourko & Linneman, 1990). The price controls were altered by Federal Housing and Rent act of 1947, exempting units built after February 1947 from all future controls; New York City continued to price control rent on virtually all apartments constructed prior to 1947 (Gyourko & Linneman, 1990). Only about 1.8% of New Yorkers actually enjoy the securities of rent controlled apartments, 45.4% do live in rent stabilized accommodations where landlords are ...view middle of the document...

The demand for affordable living is high in a city like New York; experts estimate that Manhattan would be unaffordable for those on salaries under $90,000 per year (Pittman, 2013).
According to the New York City Rent Guidelines Board annual report, “Housing NYC: Rents, Markets and Trends,” across the city there are 87,358 New York households reporting income of more than $100,000 a year which pay below-market rent thanks to the city’s rent control and stabilization laws (Norcross, 2008).” In addition, over 35% of all the city’s apartments covered by the rent control regimes are rented by tenants who make more than $50,000 a year (Norcross, 2008). This results in people within a lower income bracket not being able to afford living expenses (ex: rent). As you can see (reference chart 2), over the years New York’s vacancy trends are dropping, making housing hard to find.

Chart 2: Vacancy Trends – NY, Northeast US, US

A possible solution for these ongoing vacancy issues would be income caps on housing. Income caps would force...

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