Jobs outpaced housing, pushing prices up: report

Citizens Budget Commission lists ways to increase affordability

TRD New York /
Aug.August 26, 2020 07:30 AM
The disparity between housing and job growth is caused in part by low-density zoning throughout the city (iStock)

A report found the disparity between housing and job growth is caused in part by low-density zoning (iStock)

New York City built just 19 housing units for every 100 new jobs from 2010 to 2018, a new report shows.

The disparity between housing and job growth is caused in part by low-density zoning throughout the city, a paucity of sites which do not require political approval for projects and a property tax system that penalizes multifamily properties, according to the report.

The analysis, by the Citizens Budget Commission, also pointed to restrictions on density, high construction costs and a lack of state policies to encourage dense development in the suburbs.

The report also found that Westchester, Rockland, Nassau and Suffolk counties produced substantially less dense residential housing than Connecticut and northern New Jersey. Meanwhile, residents of Westchester and Long Island are the most likely to be rent-burdened in New York.

The finding that the city’s housing supply has not kept pace with job growth is not new. The Department of City Planning released a similar study last year; it concluded that the disconnect exacerbated displacement and homelessness. But opponents of development often argue that housing development does the opposite — pricing people out and triggering gentrification — causing Deputy Mayor Vicki Been to lament, “We have lost the narrative.”

The Citizens Budget Commission is hoping that lawmakers will take advantage of the pandemic to make it easier to develop affordable housing where it is most needed.

To ameliorate New York’s housing crisis, the advocacy group, which is governed by a mix of civic and business leaders, suggested that state lawmakers use “rarely executed” power to combat restrictive zoning in the suburbs as New Jersey, California and Oregon have done.

Exclusionary zoning in the suburbs got a boost last month when President Donald Trump scrapped a rule meant to encourage suburbs to allow affordable development.

The Citizens Budget Commission also suggested New York legislators take a second look at some state laws, including the rent law of 2019. That law may dissuade developers from using a tax benefit that encourages new housing by locking those units into rent regulation.

The report further emphasized the need to reform the city’s property tax system, which blesses wealthier condos and single-family homes with proportionately lower tax rates than multifamily properties. A lawsuit by real estate interests to have the system declared unconstitutional was dismissed by an appeals court this year.

The de Blasio administration opposes that lawsuit but claims it will fix the system by the end of next year. It has formed a commission which in January released recommendations that failed to impress the real estate industry.


Related Articles

arrow_forward_ios
A rendering of 165 Broome Street (Credit: Handel Architects)

Nonprofit plans affordable housing development near Essex Crossing

Nonprofit plans affordable housing development near Essex Crossing
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
Nestio's Caren Maio (Credit: Emily Assiran)

“Like TurboTax”: Nestio launches online leasing

“Like TurboTax”: Nestio launches online leasing
Carmel Partners CEO Ron Zeff (JLL)

Carmel Partners sells Norwalk apartment complex valued at $157M

Carmel Partners sells Norwalk apartment complex valued at $157M
National Apartment Association CEO Bob Pinnegar and Health and Human Services secretary Alex Azar (NAA; Getty)

Group representing 85K landlords joins suit to stop CDC eviction ban

Group representing 85K landlords joins suit to stop CDC eviction ban
Brooklyn’s Sunset Park is in the midst of a severe housing crisis and in desperate need of affordable housing. (Photo by Jim.henderson via Wikipedia)

Sunset Park faces severe affordable housing shortage: report

Sunset Park faces severe affordable housing shortage: report
The number of single-family homes on the market hit historic lows in July, driving prices up (iStock)

US housing supply reaches nearly 40-year low

US housing supply reaches nearly 40-year low
Wall Street investors are prepared to buy and turn single-family homes into rentals when forbearance programs expire and homeowners look to sell. (iStock)

Wall Street investors bet on single-family rentals as mortgage payments stack up

Wall Street investors bet on single-family rentals as mortgage payments stack up
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...