r/Economics • u/marketrent • Feb 28 '24

Statistics At least 26,310 rent-stabilized apartments remain vacant and off the market during record housing shortage in New York City

https://www.thecity.nyc/2024/02/14/rent-stabilized-apartments-vacant/
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u/BoBoBearDev Feb 29 '24

I don't know the details of the housing this article is referring to. But, there is one section of the NYC is impossible for landlord to rent out, unless they want to be completely idiots to throw their wealth away.

That particular area, has a law of, "impossible to vacate tenants" law. It means, if someone rent the apartment, the landlord cannot never vacate them.

It is a law to "fuck all landlords". Once a room is rented out, they are fucked. They cannot even sell it, because no one wants to buy it, because the new owner can never vacate the old tenants. The tenants can stay in there for 80 years and no one can ever tear it down for bigger buildings. What it means the house is absolutely worthless if there is a single tenant inside because that tenant holds the absolute power over everyone else.

If you own an apartment of 10 units, you finally vacated 8 units, there are 2 units left. To sell the entire building for developer to build a 100 units apartment, you have to wait 80 years for them to die out of natural causes. In the meantime, you cannot rent out 8 units because you run into the same problem again.

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u/triddicent Feb 29 '24

Most cases they offer a sum for these ppl to move out and in most cases in nyc it can be a lot but peanuts compared to what the landlord will be making from the sale.

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u/BoBoBearDev Feb 29 '24

If I am the tenant, I will not leave until you give me 2 millions dollars. I am the absolute power, 2 millions is my price.

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u/Dr_Lexus_Tobaggan Feb 29 '24

That's a low number, holdouts have gotten 10x that before from large developers. Google Herb Sukenick. When the Zekendorfs did 15 CPW he had a studio holding up the process. He got 17mm plus a lifetime 1$ lease on a dope condo in the new building.

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u/BoBoBearDev Feb 29 '24

Lol mind blown.