Unexpectedly

I was shocked to learn that price controls in the New York rental housing market depressed supply.

“A big majority of our housing stock of stabilized units have been occupied between 40 and 50 years. These units require up to $100,000 and sometimes more, to complete a gut rehabilitation. You don’t need to be a genius to understand it makes no sense to invest that much only to get an $83.00 rent increase,” one survey respondent told CHIP.

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The Commercial Observer reports that the new rent laws are encouraging small- and mid-sized landlords to exit the market entirely, writing that “many property owners have woken up to a world where their buildings are worth 30 to 50 percent less than they were a year ago.”

Stephen Green's take at Instapundit, because crony capitalists love them some crony capitalism:

Easy prediction: Big, connected players will snap up these properties at a steep discount, at which point the city will grant relief and exemptions from the new regulations.