New York University’s Furman Center for Real Estate and Urban Policy has suggested exploring the creation of a new tax abatement program meant to preserve affordable housing supply in the city.
A study by the Furman Center found that the number of apartments affordable to low-income New Yorkers has fallen 27 percent since 2002 – a loss of nearly 240,000 units. The report also noted that around 97,000 of those apartments received no city subsidies, a point used to suggest the possibility of a new tax incentive to preserve the affordability of the city’s existing housing stock, according to Capital New York.
The degree to which a landlord would benefit from such an abatement would depend on the neighborhood their property is located it. The faster a neighborhood’s rent growth, the less beneficial such a program would be for landlords.