Most people don’t think of an “emergency” as a permanent condition.
Yet the “housing emergencies” that triggered rent stabilization in New York City and other localities in the state have never ended. Most have lasted for decades.
Until now.
Kingston just ran its second housing survey and found a 7 percent vacancy rate, up from 1.6 percent in its initial survey. Under state law, rent stabilization is not allowed if the rate is above 5 percent.
Fans of rent control were incredulous — and outraged. Sarahana Shrestha, the Hudson Valley’s socialist Assembly member, called it “absolute nonsense.”
But the study was unquestionably more accurate than the first one, which was rigged to come in under 5 percent. Properties that did not answer the 2022 survey were assumed to be 100 percent occupied. (Somehow it survived a legal challenge by landlords, whose own survey showed a 6.2 percent vacancy rate.)
Shrestha says vacancy over 5 percent doesn’t mean there is no housing emergency. She authored a bill that would create other justifications for rent regulation. I doubt Gov. Kathy Hochul would sign it, should it somehow pass the legislature.
Kingston is a small city, but what happens with rent stabilization there has implications for landlords and tenants across the state. So, what are the lessons here?
- The median rent has doubled in Kingston since 2016 because virtually no homes have been built there this century. Only 5 percent of its homes are newer than 25 years old. When demand to live in the Hudson Valley spiked during the pandemic, so did rents.
- Kingston’s median home value tripled during the same period. But no one suggested homeowners be prevented from selling to the highest bidder. The city only imposed price caps on landlords.
- The city has finally taken steps to allow more homes, and developers have responded: More than 600 units are in the pipeline, the most since the 1970s. That is the best way to keep prices down.
The 7 percent vacancy rate does not mean Kingston will abandon rent stabilization. Look for the city to apply it to older buildings with 22 or more units, which were found to have a vacancy rate of 3.7 percent.
What we’re thinking about: Someone on X tweeted that Andrew Cuomo’s proposal for rent stabilization is at least better than the current system. I replied, “That’s like saying swimming with sharks is a better idea than playing in traffic.” Do you agree? Send your thoughts to eengquist@therealdeal.com.
A thing we’ve learned: PTAC stands for packaged terminal air conditioner — a self-contained heating and cooling unit typically installed through a wall. PTAC units are considered inferior to mini-splits and central air, which are quieter and more efficient (although PTAC technology has improved significantly). Thanks to reader Simone Joy Friedman for sharing the acronym.
Elsewhere…
— City Council member Carlina Rivera is the new president and CEO of the New York State Association for Affordable Housing. Rivera represented the 2nd District, covering the Lower East Side and surrounding areas, and was due to be term-limited out at the end of this year.
— Andrew Cuomo refused to release a list of his private consulting clients, citing attorney-client privilege, after Assembly member Zohran Mamdani challenged him to do so in a video linking Cuomo to controversial figures and undisclosed financial dealings, amNY reported. A back-and-forth between the two mayoral candidates began last week when Cuomo criticized Mamdani for living in a $2,300 rent-stabilized apartment despite his $142,000 salary.
— The MTA is set to award a $1.9 billion contract to Connect Plus Partners to bore tunnels and build two new Harlem stations as part of the extension of the Second Avenue subway, Crain’s New York Business reported. Construction is set to begin by the end of the year, bringing the Q line further into East Harlem.
— Quinn Waller
Closing time
Residential: The top residential deal recorded Friday was $10.5 million for 57 Wyckoff Street. The Cobble Hill townhome is 7,000 square feet and last sold in 2022 for $9.4 million. Serhant had the listing.
Commercial: The top commercial deal recorded was $125.6 million for a portfolio of units at 569 Lexington Avenue. The City University of New York is buying additional dorm space in Midtown at a former DoubleTree by Hilton hotel, Crain’s reported.
New to the Market: The highest price for a residential property hitting the market was $16.9 million for Unit 5/6 at 969 Fifth Avenue. The Upper East Side co-op is 4,600 square feet. The Modlin Group has the listing.
Breaking Ground: The largest new building project filed was for a proposed 154,188-square-foot, mixed-used building with 99 units and a community facility at 2978 Ocean Parkway in Brooklyn. Yuriy Menzak of Menzak Architect is the applicant of record.
— Matthew Elo
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