Source: Benjamin W. Schweitzer, Robert Garrett, Lydia Carter, Alison Tuiyott, Karsten Maurer, Thomas J. Fisher, Statistical Computing Data Expo (2019)
Rent-controlled units in New York City show significantly higher rates of external damage, utility damage, and pest infestations. Landlords in rent-controlled properties defer maintenance due to revenue caps, leaving tenants in substandard conditions.
Key Findings: Rent Control’s Effect on Housing Quality and Maintenance
Deteriorating Housing Quality:
○ Homes under rent control were more likely to experience external damage (e.g., broken windows, cracked stairwells), utility damage (e.g., faulty plumbing or electrical systems), and pest issues compared to non-rent-controlled homes.
○ The analysis revealed a statistically significant positive correlation between rent control and higher rates of all three damage types.
Disincentivized Maintenance:
○ Landlords of rent-controlled units are less incentivized to invest in upkeep or improvements due to fixed rental income.
○ The reduced revenue stream discourages property owners from addressing damages or upgrading their units, worsening conditions for tenants.
Borough and Time Variations:
○ The Bronx, Brooklyn, and Manhattan had higher rates of damage in rent-controlled units compared to Queens and Staten Island.
○ While damage rates have generally decreased over time across New York City, rent-controlled units consistently show higher damage rates than their non-controlled counterparts.
Conclusion:
This study demonstrates that rent control policies contribute to a decline in housing quality. By fixing rents and capping income, these policies remove the financial incentive for landlords to maintain and improve properties. Although rent control creates affordability, it fails to ensure quality housing, leaving tenants in substandard conditions.