NAHB-Supported Landlords Lose Rent Control Court Decision in New York
The Second Circuit Court of Appeals on Feb. 6 handed down a loss to rent control opponents in New York City. A group of landlords, supported by NAHB, brought suit alleging the city’s rent stabilization law is an unconstitutional taking under the Fifth Amendment both “on its face” and “as applied.” Neither of these arguments were successful.
“Facial” challenges are some of the most difficult to prove because the litigant must show there is no situation in which the rent stabilization law would be constitutional. The appellate court looked to the “well settled case law” affording municipalities great discretion in handling landlord-tenant relationships and found that the landlords failed to allege that rent control was unconstitutional in all circumstances.
Although “as applied” challenges are easier to prove, the court of appeals failed to find a physical invasion of the landlords’ property, a requirement necessary to demonstrate a taking. Despite the landlords’ novel arguments to the contrary, the court was not persuaded and again looked to historical case law upholding rent control.
The landlords will look to the U.S. Supreme Court for relief, as its current composition is ripe for a potential change in the jurisprudence.
Latest from NAHBNow
Jun 13, 2025
Which Markets Have Seen the Greatest House Price Appreciation Since the Pandemic?House price growth slowed in the first quarter of 2025, partly due to a decline in demand and an increase in supply. But since the onset of the COVID-19 pandemic, house prices have surged nationally. See which markets saw the greatest - and the least - house price appreciation since the pandemic.
Jun 12, 2025
How PWB Members are Bridging the Skilled Labor Gap in ConstructionNAHB's Professional Women in Building (PWB) Council has announced a new workforce development partnership with SkillsUSA, a national education nonprofit.
Latest Economic News
Jun 13, 2025
Household Real Estate Asset Value Falls to Start the YearThe market value of household real estate assets fell from $48.1 trillion to $47.9 trillion in the first quarter of 2025, according to the most recent release of U.S. Federal Reserve Z.1 Financial Accounts. The value of household real estate assets declined for three consecutive quarters after peaking at $48.8 trillion in the second quarter of 2024 but remains 2.1% higher over the year.
Jun 12, 2025
Producer Prices Rise in May: New Construction Input AnalysisPrices for inputs to new residential construction—excluding capital investment, labor, and imports—rose 0.2% in May, following a (revised) decrease of 0.2% in April. These figures are taken from the most recent Producer Price Index (PPI) report published by U.S. Bureau of Labor Statistics.
Jun 11, 2025
Inflation Up Slightly in MayDespite inflationary pressure from tariffs, inflation in May rose slightly but came in softer than expected. The Consumer Price Index increased from 2.3% in April to 2.4% in May year-over-year, according to the Bureau of Labor Statistics’ report.