The Supreme Court on Tuesday turned down a major property-rights challenge to rent control laws in New York City and elsewhere that give tenants a right to stay for many years in an apartment with a below-market cost.
A group of New York landlords had sued, contending the combination of rent regulation and long-term occupancy violated the Constitution’s ban on the taking of private property for public use.
The justices had considered the appeal since late September. Only Justice Clarence Thomas issued a partial dissent.
Do you think there’s only one landlord in NYC? If one sells, who is buying? Another owner!
Also, since this is about NYC, obviously co-ops and condos need to enter the conversation. What’s a co-op, you ask? That’s where the tenants own the building and run it, with possible restrictions on income and some tax benefits. They can rent out apartments if they want.
The “worst case scenario” here is the owners selling to the current tenants, which just might mean they lose money. Property owners are not entitled to a “small profit” as you put it. If they want risk-free income, they can buy a Treasury Bond.