The Perverse Effects Of Rent Regulation By Adam Davidson

685 Words2 Pages

In the New York Times article titled “The Perverse Effects of Rent Regulation,” Adam Davidson details the housing situation surrounding the economically and culturally diverse area known as the East Village. In order for an agreement to be reached concerning rent regulation and government housing programs in the area, the six key factors that drive public policy formation must be considered. Of the six factors to consider, the anticipated reactions of elected stakeholders and other stakeholders, and money can be thought of as major matters. Elected stakeholders actors involved in this situation would be the government units involved with affordable housing at the local, state, and federal level. As Davidson mentions in the article, Congress is “planning comprehensive tax-and-spending reform” when it comes to new affordable housing. Providing affordable housing and government subsidies in a neighborhood such as the East Village is costing the government large amounts of money they could possibly be making a large revenue from if rent regulated housing is to be eliminated from the picture. On the other hand, as Vicki Been puts it, “The political forces that would get rid of rent regulation would not be the forces looking for optimal legislation.” Davidson goes on to say that the landlords and developers, who can be considered other stakeholder actors in this situation, would be the ones looking for this legislation to be enacted in order to benefit from the potentially large payout. Their motivation would be to “invest in upgrades and charge higher rents” and to initiate the “billions of dollars of development” that rent regulated housing is currently preventing. Other stakeholder actors in this situation would be the businesses a... ... middle of paper ... ... amount of money and power they possess. In order for new legislation to be adopted, the ethics and morality must be considered and there should be an attempt at making a “win-win-win” situation for all. Lastly, practicality, which includes time pressure and flexibility, can be considered an irrelevant factor in this public policy formation. As it is mentioned at the end of the article, “Rent regulation is very likely to go away, eventually, even without any explicit effort to kill it. Some 231,000 units have been deregulated over the last 30 years.” As older apartments available at an affordable price reach the end of their cycle, naturally new apartments for the wealthy are being constructed to replace them. Overall, in the debate over Rent Control, the six key factors that drive public policy formation must be considered in order to reach an effective decision.

Open Document