The original rent control statutes for New York City were adopted in order to soak up an excess housing condition during World War II. Everybody was off to the war and things were crazy so they adopted 'emergency' stabilization measures. It look's like the emergency housing glut is over. The key statement is "The only new construction in the area are developments with enormous, jacuzzi-filled mansions." If prices are booming, why aren't people building houses that are relatively affordable?
The problem is simple, builders don't trust the local politicians anymore. They've had too much stolen too often to trust that politicians will keep their word and allow them to charge market rents for the long haul. So they only build for the rich because the rich can always afford to buy and they are the least likely to be able to get the local council to rob the developer blind.
Posted by TMLutas at March 23, 2004 05:32 PM