There has been much controversy lately over the room-sharing startup Airbnb which has recently awakened the argument over innovation vs. regulation. Airbnb has been presented itself as one of the most visible players in the “sharing economy” - ahead of services such as Vrbo and Flipkey. These short-term rentals are allegedly depleting the scarce housing market.

For New Yorkers, the refusal of rent-stabilization begs indignation, shock, or simply confusion. In the Financial District, apathetic responses to the option to convert units in eligible buildings to rent-stabilized apartments has become an unusual phenomenon. Up to 16 Lower Manhattan apartment buildings received tax breaks since 2006, requiring the apartments to be rent stabilized. Under the Section 421-g Program, the NYC Department of Housing Preservation and Development designated the Lower Manhattan Abatement Zone, defined as the area south of the centerline of Murray, Frankfort and Dover Streets as an area eligible for partial exemption and abatement.

Rent-stabilized apartments are some of the most coveted rentals in all of Manhattan. As a whole, rent regulated apartments (found in the form of rent-stabilization and rent-control) offer a number of benefits to the resident. With the promise of rents that are far lower than market rate rents as well as the promise of continual lease renewal, rent stabilization holds quite the attraction for any current or aspiring Manhattan resident. With these properties held in such high regard and demand, it thus comes at no surprise that the competition for the few available rent-stabilized apartments in Manhattan is quite fierce.