grizybaer t1_je4m3ag wrote on March 29, 2023 at 11:42 AM

Reply to comment by Tinkiegrrl_825 in Ex-homeless tenants face mass eviction by Lower East Side landlord by natekrinsky

Its more of a problem in lower cost of living areas with lower costs to buy.

In higher cost of living areas, higher home prices mean lower rates of return.

When comparing Boston vs NYC, home prices are 7% more in NYC but rents are 40% higher in NYC

Tinkiegrrl_825 t1_je4mn6n wrote on March 29, 2023 at 11:47 AM

So what’s the solution? Lift all the protections, let the city crumble a bit because the people who run it can’t afford to be here, wait years for it to become less desirable over it?

supermechace t1_je5dj9g wrote on March 29, 2023 at 3:13 PM

I have a theory that much of current American capitalism is finding ways to shift costs(including labor and time) to someone else. I would say current crisis has been brewing partly because employers were able to get away with low salaries and benefits for a long time. The resulting consequences of people being priced out causing homelessness was shifted to tax payers to pay for homeless shelters. NYC politicians talk a lot about affordable housing but ultimately fail to enact anything and keep leaning on private sector solutions because they're backed by real estate industry yet propped up by property tax revenue. Unfortunately in this musical chairs of shifting responsibility and costs it's hard to see a solution. If govt services collapse the govt might resort to outsourcing complete depts

grizybaer t1_je60y9q wrote on March 29, 2023 at 5:41 PM

Not mentioning a solution but a deeper dive into unintended consequences.

NYC and Boston are large cities. As far as I know, there were fewer tenant protections enacted in Boston and overall, rent has not increased as quickly.

More protections seem to protect bad actors and also has a disproportionate impact on smaller owners who cant absorb the costs.

Small owners leaving the market seems to create a larger problem of consolidated ownership/ fewer players, which leads to higher rent .

If my logic is wrong please let me know. Property in NYC is expensive and renting your property carries risk. Having tenants who refuse to pay rent can easily push owners into foreclosure