Property Valuation
In New York City, the value of a rent-stabilized apartment building is most affected by:
AThe list price of neighboring non-regulated buildings
BThe regulated rents, which limit income and therefore affect capitalized value✓ Correct
CThe replacement cost of the building
DThe number of units only
Explanation
Because rent-stabilized apartments have government-limited rents, the income stream is constrained, which directly reduces the capitalized value of the building compared to a similar market-rate building.
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