New York City Comptroller Mark Levine has criticized state and city rent policies, stating they are a significant factor in the affordable housing crisis and contribute to a large number of vacant rent-stabilized apartments. Levine contends that current laws make it difficult for landlords to invest in necessary renovations because they cannot sufficiently increase rents to cover the expenses, resulting in a substantial portion of rent-stabilized units remaining unoccupied.
According to a recent report, approximately 57,000 rent-stabilized apartments were vacant across the five boroughs last year. Levine explained on the "Cats Roundtable" program that when a vacant apartment requires costly renovations, sometimes exceeding six figures, landlords are unable to raise the rent enough to recoup these costs. "This has got to be fixed. We’ve got to activate these homes so that they go back on the market," Levine stated, emphasizing the need for flexibility to allow landlords to pay for renovations while preserving affordability.
Levine also pointed to the city's high construction costs and regulatory hurdles as contributing factors to the housing shortage. He cited the Rent Guidelines Board's recent two-year rent freeze for stabilized units as an example of policies that can hinder maintenance and development, a concern echoed by landlords who claim it will further degrade the housing stock. He noted that building higher-end apartments can cost over $1 million, and even more modest units can reach $750,000. "It’s outrageous. It is partly the fault of city government, which has so many rules and regulations and makes it very, very difficult to get approval for permits," Levine said, adding that obtaining housing construction permits can take 12 to 18 months, a timeline he believes should be drastically shortened.
Another issue impacting the city's housing stock, particularly the New York City Housing Authority (NYCHA), is rent collection, which remains below pre-pandemic levels. Levine highlighted that NYCHA relies on rent payments for maintenance, and a decline in collections strains its operational budget. He suggested the need to encourage tenants to resume rent payments to support public housing operations.
In a broader economic context, Levine commented on the city's job market, describing it as stagnant with limited growth outside of healthcare. He attributed this to increased competition from states like Florida and Texas, suggesting New York needs to improve its strategies to stimulate job growth and development. This sentiment was echoed by former Gov. George Pataki, who claimed New York is a state in decline due to what he described as excessive taxes, regulations, and spending under one-party Democratic rule.