Rent Stabilization in Lower Manhattan's Booming Economy

Letitia James, New York City public advocate

NEW YORK CITY—The Alliance for Downtown Manhattan yesterday released its annual real estate year in review. The report concluded Lower Manhattan enjoyed a banner year in 2017 with a 16-year high in private sector employment with 242,000 jobs, and the highest level of commercial leasing since 2014. John Jordan will have a complete GlobeSt.com report on the study’s findings in our afternoon online posting.

In addition, the MNS Manhattan rental market report for Jan. 2018 recorded the most expensive non-doorman, studio, one- and two-bedroom apartments were in the Financial District and TriBeca, ranging in average from $3,261 to $7,788 for monthly rents. Manhattan’s most expensive doorman studio, one- and two-bedroom properties were all in SoHo, ranging in average from $4,398 to $8,519.

In this economic context, what should be the policies in rent regulation of the housing stock in Downtown Manhattan?

The New York State Real Property Tax Law section 421-g was enacted in 1995. Letitia James, the city’s public advocate noted this was to revitalize Lower Manhattan. At the time nearly 25% of the district’s building space lay vacant. With tax abatements, energy rebates, and financial incentives, the city helped developers convert commercial buildings into apartments subject to rent stabilization.