QUESTION
How does rent regulation impact occupancy, home improvements, and the availability of rent-stabilized units?
1:01:22
·
3 min
Data shows that rent regulation has not negatively affected occupancy rates or the availability of rent-stabilized units, and improvements are being made.
- Occupancy in rent-stabilized units has increased, with a significant decrease in units off the market compared to 2021.
- Less than a $1,000 legal rent criterion from 2021 revealed very few units off the market in need of repairs, indicating financial feasibility for landlords.
- In 2023, the measurement of units off the market for a year or more in need of repairs with a legal rent of less than $1,500 showed even fewer such units, suggesting improvements.
- Overall, more households are occupying more units, including rent-stabilized ones, demonstrating an increase in housing occupancy rates.
- The city offers tools to help owners with housing conditions, facilitating improvements and compliance with codes.
Lincoln Restler
1:01:22
your thoughts on rent regulation?
1:01:23
I mean, the the the narrative that landlords tried to put out after rent regulation was passed, it seems like this this report tells a very different story around occupancy and home improvements.
1:01:34
Could you just speak to that?
Ahmed Tigan
1:01:35
I would the only thing I would say is that, you know, one very important piece is we know that the building portfolios in general saw tremendous pressure during COVID continue to see pressure as a result.
1:01:49
Of, you know, meeting the needs that they had in front of them now over the last couple of years, making sure that they're up to standards and the right code regulations.
1:01:59
I think working with the council to CJ 51 move forward would be a huge help to meeting those needs.
1:02:06
And making sure that we are, making sure that where the city can help, we can do that work.
1:02:13
But there have there have been pressures.
1:02:15
I'll let Doctor.
1:02:16
Gommer talked to how the data speaks to exactly that data point.
1:02:19
Sherry Glied:
Elyzabeth Gaumer
1:02:21
Sure.
1:02:21
So I think your question actually was phrased exactly right that what we see in our data and measuring this consistently between these two cycles is that we As across the board, we saw more households occupying more units of every type.
1:02:37
That was also true for rent stabilized units.
1:02:39
That we have seen be off the market for various reasons in 21, that that, as a reminder, had been about 42,000 units.
1:02:47
And now that's down to about 26,000 units.
1:02:51
So that's a very also stark drop.
1:02:53
Right?
1:02:54
It's following the same pattern that we've seen across the board.
1:02:57
The other thing following up on our our conversations that we had with you I think earlier in the spring on on these particular issues, We did obviously go back and measure again how many of those units were low cost and in need of hairs and had been empty for 12 months or longer.
1:03:16
Right?
1:03:16
Those being just one way of measuring this argument that rent stabilization puts many, many, many units in a position where they're not financially feasible to rent.
1:03:27
For the 20 and as a reminder, in the 21 survey, We did not see many of those units.
1:03:33
We saw just about 2700 rent stabilized units that have been off the market for a year or more.
1:03:39
In native repairs with a legal run of less than a $1000.
1:03:44
Right?
1:03:44
That's what we had discussed from the 21 survey.
1:03:49
Now in 23, we measure that again we in fact have so few of those units that we couldn't use the $1000 under a $1000 as rent.
1:04:00
We couldn't measure that in any reliable way.
1:04:02
So We are this year, we measured how many rent stabilized units are off the market for a year or more in need of repairs with a legal rent of less than $1500, which the median rent for those units, and it was 1700.
1:04:16
So even though we're looking at a slightly larger tranche, we're seeing a lower number.
1:04:22
So again, every one of these measures, in run stabilization as well as elsewhere, we're just seeing that there are more households in more units.
1:04:30
And very, very, very, very dramatic drop offs of all types of bacon.
Lincoln Restler
1:04:34
In an altogether depressive report, I'm happy to hear that strengthening rent regulation protections did not allow the sky to fall.
Ahmed Tigan
1:04:41
Yeah.
1:04:42
Again, it's these are these are housing conditions and the city has tools to help owners with those housing conditions.