If you won a lottery for a unit (with Market Rate rent) (rental market)

[infinity2000]

For better or worse, many of the lottery units' rent prices are becoming similar to market rate.

With that, I'm curious how folks are thinking about this if there were to win a unit. Will you take the lottery unit or go rent a unit in the open market?

This is under the assumption that you are currently renting and perhaps will be renting for the next few years at least.

NYC reported the highest rental price in August. Who knows what the rental market will be in 6 months or 1 year from now. For one perspective, according to economists/this article: https://www.cnbc.com/2022/09/28/how-...o-experts.html

They expect rental prices to rise until middle of 2023.

But rental prices are relatively sticky and is not known to fall. Curious to hear debates/speculation on the rental market as well.

IMO I think market rate lottery unit makes sense if you foresee renting for at least the next few year and want peace of mind from market rate increases. Rent stabilized unit provide a known/fixed 3.25% and 5% increase, whereas with a market rate increases, it is unknown. It is even more advantageous of you plan on staying in unit/renting long term as your salary can increase with a progressing career while the RS increase are fixed.

Curious how other people think about market rate lottery unit.

[macnyc2003]

In addition to limiting the amount of the increases you could get, rent-stabilization also gives you the right to a guaranteed lease renewal. People renting on the open market could be informed that the landlord is declining to offer a renewal, period. Buh bye!

Also, RS means that the landlord cannot reduce services without lowering the rent. The landlord can't say, for instance, that the 24-hour doorman is now working only between 6 p.m. and midnight.

Plus, the rent-stabilized increases aren't always 3.5% and 5%. In prior years, when inflation was low, we had a couple of years of zero increases or 1% or 2% jumps.

[WildAboutHarry]

I agree with Macnyc2003 above. I will add, taking a lottery unit with rent near parity with market rate could be a chance to move into a nice area or a potentially nice area and have the security of a guaranteed renewal with regulated rent increases.

If a tenant is thinking about circumstances where they don’t see income growth in the next few years this can be a comfort. If a person took parental leave or something.