Who Really Benefits from New York City’s Rent Regulation System

This report examines New York City’s rent stabilization system and estimates the effects of total or partial deregulation. It finds that rent stabilization provides little benefit to residents of the outer boroughs and the lower and middle-income neighborhoods of Manhattan, while providing a substantial subsidy only to the residents of the relatively affluent areas of Lower and Mid-Manhattan. The report also finds rent increases for stabilized housing following deregulation would be significantly less than generally expected. Because residents of neighborhoods outside of the affluent part of Manhattan are not receiving significant subsidies, their rent increases would be minimal to non-existent. In the affluent areas of Lower and Mid-Manhattan, the substantial expansion of the unregulated housing market would create downward pressure on rent levels, making rent increases for stabilized housing less than might be expected. The report’s specific findings are as follows: • The median monthly subsidy provided by rent stabilization for all of New York City is $42. How-ever, under total rent deregulation the median monthly rent of subsidized housing would increase by only $8 due to the expansion of the unregulated market. Under vacancy deregulation, the me-dian monthly rent increase during the first two years would be $35