WHAT HAPPENS WHEN THERE IS MORE DEMAND THAN SUPPLY?

If you took even one economics class in school, you likely remember this fundamental concept: when demand exceeds supply, prices rise. When supply exceeds demand, prices fall. That’s Economics 101 — the basic law of supply and demand. But when it comes to rental housing in New York City, those textbook rules get filtered through a very real-world maze of legislation, zoning, infrastructure limits, and political promises.

Right now, rents in New York are high — in some neighborhoods, record-breaking. And while it’s tempting to look for a single cause (greedy landlords, inflation, pandemic disruption, or Wall Street bonuses), the truth is far more systemic. We simply don’t have enough rental apartments to meet demand. And when the inventory is tight, competition heats up — and so do the prices.

New York City has added residents far faster than it has added housing units. Between 2010 and 2020, the city’s population grew twice as fast as the housing stock. In a healthy market, new construction helps ease demand. But in New York, construction can take years — and that’s if the financing, zoning, and community board approvals all go smoothly. The result? A persistent shortage of available, up-to-date rental units, particularly in desirable neighborhoods.

Several current mayoral candidates are running on platforms that promise lower rents. It’s an appealing message, especially since many struggling New Yorkers cite rising rents as their number one financial concern. However, unless those plans include meaningful increases in housing supply — which could be accomplished through rezoning, incentives for new construction, and streamlined permitting — it’s hard to imagine any sustainable path to lower prices. In addition, rising rents are also due to rising costs. When real estate taxes, wages, insurance, maintenance, and repairs costs, etc., all rise (which they have), the costs to operate a building effectively compel landlords to raise rents to maintain a viable operation.

There are exceptions, and there are greedy landlords. But are those costs and expenses going to be frozen as well? I don’t think so, which means a rent freeze will negatively impact the upkeep and quality of the buildings. After all, most rental properties across the U.S. (and in NYC) are owned by large corporations who are not going to let their profits slide, especially if they are publicly traded.

The promise of frozen rents reminds me of the recently enacted FARE Act, which I have written about here. The legislation shifted the broker fee burden from tenants to landlords in many rental transactions. Although well-intentioned, I predicted that it would backfire economically, and thus far, it has.

Landlords, now facing additional costs on the front end of a lease, have responded the way most businesses would: by raising rents to absorb the difference. Rents shot up drastically the week after the FARE Act became law. While this doesn’t happen uniformly across all properties, the ripple effect is clear. By trying to protect renters from fees, the Act inadvertently tightened the market further — discouraging some landlords from listing units or offering competitive terms and raising the bar for renters already navigating a pricey market.

A proposed “rent freeze” is not the same as the FARE Act of course, but there will be implications (if it is even possible to pull off). You can’t legislate around supply and demand. You can influence it, shape it, even subsidize or regulate it — but at the end of the day, if more people want to live in New York than we have apartments for, rents will rise. If you truly want lower rents, the answer isn’t just rent caps or broker-fee bans. It’s more housing. A lot more housing.

Whether you are looking to rent, buy, sell, or lease, I am always here to discuss all aspects of it. There is always good inventory for purchase and for rent—if you know where to look. Some neighborhoods have better availability than others, and not every listing is publicly marketed.

I hope your weekend is filled with a healthy supply of rest, relaxation, and fun!

Best, Michael

Question of the Day

Are you curious how the New York City hotels size up compared to the rest of the country?

Click to hear more!

Local News

Your dog is now legally a member of the family, says a New York judge

In the doghouse, we *all* fam

It’s official: In New York, dogs aren't just good boys—they’re family.

In a groundbreaking ruling that has tails wagging from Bushwick to the Bronx, Brooklyn Supreme Court Justice Aaron Maslow declared that dogs are no longer just property in the eyes of the law, but rather “immediate family.” The decision stems from a tragic 2023 case involving a dachshund named Duke, who was struck and killed by a car while on a walk with his owner’s mother in Mill Basin, per the New York Post.

The case, brought by Trevor DeBlase and his mother Nan, challenged the legal status of pets in wrongful death and emotional distress cases. Historically, pets have been treated like personal property, meaning damages were limited to their monetary value (read: the price of a purebred pup, not the priceless grief they leave behind). But Judge Maslow’s ruling rewrites the rules.

This court case is making waves for pet lovers—get the full story below.

More Info: CLICK HERE

The Most Stunning Rooftop Pools in NYC

Right Now — And Where to Swim Without a

Membership

Here's where to get a pool day pass this weekend when it's sweltering hot.

NYC’s rooftop pool scene is hotter than ever—and yes, you can dive in without a pricey membership or exclusive hotel stay.

Whether you’re looking for chic skyline views or just a sunny spot to cool off, these pools are open to the public, with day passes (and even a few free options) available.

And if you’re after completely free places to swim, don’t miss our ultimate guide to NYC’s public pools—with dozens of no-cost options across all five boroughs.

Ready for a rooftop escape? These public-access pools are serving views and vibes—get the details below.

More Info: CLICK HERE

NYC Secures ‘Best City In The World’ In

Latest Global City Rankings

Oxford Economics released its Global Cities Index 2025 and New York City has officially taken the crown for the best city in the world.

After spending the past decade overshadowed by London in the World’s Best Cities ranking, we realized we’d been following the wrong list all along. Oxford Economics finally sees New York City the way we do—ranking it as the best city in the world!

Oxford Economics Global Cities Index utilizes 40 economists who are experts in spatial data, urban dynamics, and forecasting. With this expertise, they analyze indicators across 1,000 cites worldwide to measure their strengths and attractiveness. Categories such as economics, human capital, quality of life, environment and governance are explored to get a better understanding of the opportunities and challenges being faced by each city.

There’s more to the win—see the full report and rankings breakdown at the link below.

More Info: CLICK HERE

360 West 21st Street, Apt. 2L

1 Bed | 1 Bath | 3.5 Rooms | Co-op

Chelsea | Maint.: $1,804/mo

Now offered at: $725,000

Welcome to Residence 2L at 360 West 21st Street — a beautifully renovated, loft-like one-bedroom home that seamlessly blends classic pre-war elegance with thoughtful contemporary upgrades. Bathed in natural light and overlooking serene courtyard views, this Chelsea gem offers comfort, character, and quiet in equal measure.

A gracious entry gallery, flanked by custom storage, opens into a spacious living and dining area with soaring ceilings, rich hardwood floors, and timeless pre-war details. The open-concept layout creates an airy, inviting flow perfect for entertaining or simply unwinding at home.

The thoughtfully designed kitchen is a true standout, featuring stone countertops, custom solid-wood lower cabinetry, sleek modern uppers, and two large windows. Stainless steel appliances and abundant storage make this a chef’s dream rarely found in a one-bedroom layout.

Tucked away in the rear of the home, the tranquil bedroom enjoys picturesque views of the building’s private landscaped garden. Generously proportioned, it easily accommodates a king-sized bed, additional furniture, and even a dedicated home office space. The renovated bathroom features floor-to-ceiling white tile, an intricate mosaic-tiled floor, a classic pedestal sink, and polished chrome fixtures for a crisp, elegant finish.

Additional highlights include through-the-wall air conditioning, beautifully restored hardwood floors, custom built-ins, and exceptional closet space throughout.

Chelsea Court is a pet-friendly, pied-à-terre-friendly cooperative offering a virtual doorman system via ButterflyMX, a resident manager, bike and cage storage, central laundry, and a beautifully maintained private garden for residents. Ideally located in the heart of Chelsea, you'll find the High Line, the Whitney Museum, Chelsea Market, world-class restaurants, art galleries, and boutique shopping all just moments away.

See listing website: CLICK HERE

More Listings

Michael J. Franco

Lic. Assoc. R.E. Broker

M: 917.817.4122

mfranco@compass.com

Office: 646-982-0353

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. All Coming Soon listings in NYC are simultaneously syndicated to the REBNY RLS. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.