Using the Internet, perform a search and find a reference for a rent-controlled
ID: 1101561 • Letter: U
Question
Using the Internet, perform a search and find a reference for a rent-controlled apartment in New York City. Use the information you find to compare rent prices to those in Los Angeles. Complete the chart below and answer the two questions beneath it.
You can use the following resources to help in your search:
New York
Size of Apartment
Features
Cost
Los Angeles
Size of Apartment
Features
Cost
1. How does that compare to rental prices in Los Angeles?
2. Who is rent control helping and/or hurting?
New York
Size of Apartment
Features
Cost
Los Angeles
Size of Apartment
Features
Cost
Explanation / Answer
New York
Size of Apartment
Features
Cost
Los Angeles
Size of Apartment
Features
Cost
The rent in Los Angeles is significantly lower than that in New York. For comparable neighborhoods the rent difference is stark. This might be attributed to the different policies adopted across the areas. While one includes constructions only before 1979 the other one is more broader.
But one point to be noted is LA owners are using loop holes in policies to undertake new development works which has driven rents by upto 20% in 5 years in some areas.
Rent control Hurts in long run. You can understand it as follows
1)
Rent controls are regulations by state or local governments restricting the amount of rent landlords can charge tenants designed to keep the cost of housing affordable for residents. It limits the changes that can be made in the price of renting a house or other real property.
2)It Discourages new housing construction. If rentors are not getting the market price then why would they take any kind of risk? Manhattan New York is a prime example; very little construction is rental property but instead coop or condos. result shortage in units available.
The second effect is that since the prices are low there will be many buyers in the market and chances are high that many of them genuinely in need will be left out as there is a shortage in units available.
3)
The problem comes when people start circumventing the law. Rent control cannot be exercised on Condos. So those who get left out have no other option but to opt for such places. Along with being at high prices they also account for the revenue lost because of the rent control. End result is that the prices are way higher that what should have been in a free market.
Some more links if you want to delve further.
http://www.nyc.gov/html/hpd/html/apartment/lotteries.shtml
http://www.rochdalevillage.com/live.html
http://la.curbed.com/archives/2014/04/la_landlords_pushing_out_all_the_rentcontrolled_apartments.php
http://www.learnvest.com/2012/09/la-vs-nyc-how-much-ive-spent-living-in-two-different-cities/
New York
Size of Apartment
Features
Cost
Manhattan Avenue, Greenpoint, Brooklyn 1 Bedroom 400 sq ft on-siteresident manager, rooftop lounge with city views,
fitness center, business center with Wi-Fi, landscaped
courtyard, garage parking*, storage units* $647 Manhattan Avenue, Greenpoint, Brooklyn 2 Bedroom 600 sq ft on-site
resident manager, rooftop lounge with city views,
fitness center, business center with Wi-Fi, landscaped
courtyard, garage parking*, storage units* $836
Los Angeles
Size of Apartment
Features
Cost
Santa Monica 1 bedroom 410 sq ft pool, a fitness center, a media lounge and various other facilities within the community itself $323 Santa Monica 2 bedroom 630 sq ft pool, a fitness center, a media lounge and various other facilities within the community itself $596Related Questions
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