This article was posted on Wednesday, Sep 13, 2023

The Supreme Court may hear a challenge to New York State’s Rent Stabilization Law and opinion states that tenants and landlords would be much better off.

As reported in the NY Post, “in a case that promises to utterly upend New York politics — and boost the city’s housing market — the Supreme Court may soon strike down the essence of the rent control laws.”

Earlier this year, New York landlord groups asked the court to hear their challenge to the state Rent Stabilization Law, which lets the city cap rent hikes and gives tenants a virtually ironclad right to renew their leases or pass the property on to friends or family. The suit declares an unconstitutional “taking” of property, in violation of the Fifth Amendment.

A similar suit filed in 2019 was dismissed by the U.S. District Court and Second Court of Appeals, but lately, the Supreme Court has been backing up owners and standing up for property rights in several cases.

The Rent Stabilization Law, they argue, has had a “detrimental effect on owners and tenants alike and has been stifling New York City’s housing market for more than half a century.”

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The Supreme Court was expected to decide as soon as September 26th whether or not they will hear the case.  It was reported that if the court doesn’t act on this, NY City’s housing market is still “headed for disaster”.  It was reported that one in five landlords is losing money and some will start walking away from the housing market – which is exactly what is happening in California.