Could you support a family of three in New York City on $25,000 a year?
An Uber driver with a stay-at-home wife and 7-month-old is doing just that, the New York Times reported.
He takes home $25,000 a year and pays $1,250 a month to share a LeFrak City apartment, plus $400 a month for utilities, according to the article.
Rent plus utilities represents 79 percent of his income. The definition of rent-burdened is more than 30 percent.
This is clearly a family in need of affordable housing. But here’s the catch: They would not qualify for the vast majority of such housing, because they are too poor.
The cheapest rung of the affordable housing ladder is for tenants earning 30 percent of the area median income. For a family of three, that’s about $43,740, according to the Department of Housing Preservation and Development.
It seems paradoxical for the family to pay 79 percent of their income on rent and utilities because affordable housing doesn’t let them pay more than 30 percent. It’s quite common for New Yorkers to be rent-burdened to the tune of 40 percent or 50 percent or more, although 79 percent is extreme — and maybe impossible.
That is, the numbers in the article don’t quite add up. The driver told the Times he and his wife spend $800 a month on groceries and baby food. So their rent, utilities and food add up to $2,450 — about $370 more than he makes.
Perhaps the Times left out some revenue sources, such as the earned income tax credit. The EITC, awarded once a year, maxes out at $4,328 (the equivalent of $360 a month) for a family of three. The family in the Times story would still need more money for clothing, miscellaneous expenses and their one indulgence — one restaurant meal per month.
What we’re thinking about: It’s fair to criticize Mayor Zohran Mamdani’s plan for a city-owned supermarket in East Harlem, but not to say — as many people did on social media — that $30 million is too much to spend on construction because supermarkets are listed for sale for $1 million to $5 million. The comparison is, dare I say, apples and oranges. The city is building a store that it will lease out. That’s not the same as buying a business, taking over its lease and paying rent. Send thoughts on the supermarket plan to eengquist@therealdeal.com.
A thing we’ve learned: TRD’s crack research department spotted a $5.3 million unit purchase at The Dakota by Milos Raonic, the former world No. 3 tennis star who retired in January at 35. But you can’t just walk into the Dakota, which has been called “New York’s most exclusive building.” Approval is required, and celebrity status can work against you at co-ops that don’t like attention.
Fortunately for Raonic, he had two things working in his favor (besides $20.7 million in career earnings, which doesn’t include endorsement deals and exhibitions): First, he had a sponsor in longtime Dakota resident, Sotheby’s auctioneer and tennis buff Benjamin Doller; and second, he is not the first former tennis pro at the famous co-op. Mary Carillo preceded him, according to Who Lives at The Dakota, which might be the most-viewed TRD story ever.
Elsewhere…
What goes around, comes around. So they say.
Daily Dirt readers might remember City Council member Farah Louis for her bill requiring periodic inspections of steam radiators. Her initial bill drew criticism from the real estate industry because it required annual inspections of every steam radiator by a master plumber, which was clearly ridiculous.
In the face of that well-deserved blowback, Louis amended the bill. The version enacted Nov. 8, 2025, allowed superintendents, engineers and various other professionals to make the checks, and every two years instead of annually.
Louis is now back in the news, but this time not by design.
Her home was raided by the feds as part of a corruption investigation into BHRAGS, a homeless shelter operator and home care organization that in recent years has received truckloads of dollars in city funding. Two of its executives have been charged with embezzling $1.3 million; Louis has not been accused of wrongdoing.
Gothamist reported that the Flatbush Council member allegedly steered more than $450,000 in city funds over five years to the embattled nonprofit. That money represented most of what the Council sent BHRAGS, but the big money came from the Department of Homeless Services.
DHS awarded it contracts totaling more than $200 million after the migrant influx began in 2022. Federal prosecutors in Brooklyn are looking to see if Louis and her sister, a mid-level aide to Gov. Kathy Hochul who has since been placed on leave, received kickbacks, the Associated Press reported.
The feds are also looking into Fort NYC Security, which received a $3 million contract from DHS.
Closing time
Residential: The largest residential sale Thursday was $8 million for a pre-war co-op unit at 1125 Park Avenue in Carnegie Hill. Ann Cutbill Lenane at Douglas Elliman had the listing.
Commercial: The largest commercial sale was $22 million for a portion of 300 East 42nd Street. An LLC tied to Moses Mizrahi includes 51,735 square feet and 10 floors. The conversion project was from Somerset and Meadow Partners.
New to the Market: The highest price for a residential property hitting the market was $40 million for a 4,322-square-foot condominium unit at 520 Park Avenue in Lenox Hill. The apartment last sold for $30 million in 2018. The St. André Team at Compass has the listing.
Breaking Ground: The largest new building permit filed was for a proposed 12,744-square-foot, 14-unit residential project at 471 Liberty Avenue in East New York. Lester Katz filed the permit on behalf of Eliazar Aboksis.
— Matthew Elo