Translation: What if… New York had stricter rent-control laws like those in Paris?

New York City has rent control and rent stabilization laws, but they apply only to some apartments—about 47% of the housing stock. In 2015 France passed a rent control law that limits rent increases on all rental units in Paris, in which no lease could be more than 120% of the median rent for the apartment type. Early results showed an impact, with many rents going down or staying steady, but in 2017 the law was struck down by an administrative court. Berlin, Germany passed a similar law in 2015, but that too, was voided in court. Attempt to pass such laws in the U.S. would likely meet a similar fate.

But the Paris government has other strategies at its disposal, including the “right of first refusal,” giving it priority over private purchasers when a property is for sale in rapidly changing neighborhoods. Every year the city buys some of these properties at market rate and converts them to subsidized housing. This policy is meant to limit gentrification and stop displacement of poorer residents. Critics point out that the program is very expensive, with a high cost per unit, and may not affect enough units to make a big difference in housing costs overall.

What do you think, should New York adopt a similar strategy?

Find out more at the “Guarantee permanent affordability” strategy at the Housing a Growing City table in the Future City Lab.