The U.S. Supreme Court recently ruled against a challenge to New York City's rent-stabilization system, which caps prices on nearly a million units in the city.
Supporters of the law say that it protects residents from the financial pressure of costs that would be impossible for many to afford, Bloomberg reports. The median household income for tenants of the 970,000 rent-stabilized apartments in the metro area is $37,000 according to the most recent survey by city officials. The average rent for these units was about $1,050, compared to $1,369 for unregulated apartments.
The current system of regulating rents was established in 1969 as vacancies fell and prices rose. The challengers argued that the law effectively forced them to rent part of the building they owned whether they wished to or not.
The rejection of the case suggests that the rent stabilization laws in New York are safe from anything short of legislative action. This means rental property management firms and investors will likely see the status quo continue for the time being.