Rent Control Is the Real New York Scandal

The Wall Street Journal reports:

New York City has had rent control laws since 1947, on grounds that they were necessary to protect people from rising rents. New York State expanded the regime in 1969, creating a rent stabilization program to cover apartments built after 1947 and before 1974 -- allowable rent increases are set by the City's Rent Guidelines Board.

The restrictions were loosened somewhat in 1971 and again in 1997 because of the realization that the system was benefiting wealthy renters. Under today's rules, landlords can move apartments renting for more than $2,000 a month with occupants making more than $175,000 a year onto the free market.

Today, there are 43,317 apartments where tenants (or their heirs) pay rents first frozen in 1947. There are another 1,043,677 units covered by rent stabilization. All told, about 70% of the city's rental apartments are either rent controlled or rent stabilized. And because the system has been in place for more than six decades, many residents see their below-market rents as an entitlement.

You'll want to read this one.