New statewide rent control laws have thrown the New York City apartment market into turmoil, with prices of properties impacted dropping sharply overnight and the possibility that it will lead to the deterioration of housing stock and depress the amount of supply.

The law – the Housing Stability and Tenant Protection Act of 2019 – affects 1.1 million rent-stabilized apartments in New York City alone, representing somewhere between one-third and one-half of the apartment stock in the five boroughs. The new controls have many provisions that are troublesome for property owners, but the most critical issues involve taking away the ability to transfer stabilized units to market rates and the limits on the amount owners can increase rents to pay for capital improvements.

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