Rent Control in NYC
Across the river in New York City sweeping new rent control laws have passed the state legislature, and NY Governor Cuomo has stated he will sign into law. The fact that rent control has had disastrous effects in communities where it has been in effect, is of no consequence to politicians looking for votes. Our “public servants” will champion it, under the banner of being for “the little guy”.
There may be some indirect consequences for the Garden State. Short term these consequences may include;
NY Investors who have already starting to invest in New Jersey may pick up the pace and focus their investing activity in NJ
This may result in an increase in the asking prices for multi-family and apartment buildings, particularly in towns with no rent control laws. This influx of capital will have an inflationary effect and create short term chaos (namely a decrease in profit margins).
Some NJ legislators, looking to boost their chances for re-election, will look to expand rent control here as well.
The long-term consequences will be the continued exodus of people and business from the Northeast. This will lead to less demand for residential and commercial property in the Northeast.
One only needs to look at Japan to see when the population decreases, so does demand. Japanese real estate has been in a 30 year slump.
The key for investors is to stay informed and to let their elected officials at every level of government know their concerns. Stay vigilant and have a great summer.
There may be some indirect consequences for the Garden State. Short term these consequences may include; NY Investors who have already starting to invest in New Jersey may pick up the pace and focus their investing activity in NJ.
Regards, Dave Corsi MREIA VP
Dave Corsi is an active New Jersey investor and property manager for over thirty-five years, a past president of MREIA, current Vice President, Vendor and Legislative Chair, and a MREIA member since the early 1980s. He has lectured at the Learning Annex, the Learning Tree, and was the host of the radio show, “Let’s Talk Real Estate” and the program, “The Lowdown” on WYGG (88.1 FM) Today, Dave is the President of Peace of Mind Management. Corp, a real estate consultant, and is particularly skilled in creating transactions which benefit both buyer and seller.