Increasing Housing Opportunity in New York City
New York City neighbourhoods are about to change dramatically. The administration of Mayor Michael Bloomberg is undertaking substantial redevelopment plans, neighbourhood by neighbourhood, which will alter the pattern of growth for generations to come. At the same time, New York City’s housing costs have marched dramatically upward, making it increasingly difficult for many New Yorkers to afford housing.
The proposed planning changes can either deepen the challenges of affordability or set a new course toward ensuring a diverse, stable housing stock that serves the needs of the spectrum of New Yorkers. Inclusionary zoning—setting aside affordable units in new housing developments—offers New Yorkers a tool to guarantee that the benefits of changes occurring in their communities will be fairly shared in the years to come.
From 1987-2002, 162,976 new units of housing were built across New York City. This new construction continued existing housing segregation patterns. Market rate housing (127,461 units) was predominantly built-in high-income neighborhoods like the South Shore of Staten Island (15,644 units) and the Upper East Side of Manhattan (14,251 units).
Affordable units (35,515 units) were primarily built in lower-income neighbourhoods of Harlem, the Bronx, and Brooklyn. The development plans offer substantial opportunity for the city, potentially creating over 80,000 new units of housing. The administration projects more than 40,000 units in the pipeline for the next 10 years (see Appendix A).
However, it is not clear that the housing opportunity will be broadly shared. Unless aggressive action is taken, the proposed redevelopment plans are likely to deepen the trend of income-segregated neighbourhoods and offer little benefit for low- and moderate-income New Yorkers.
New York City’s Affordable Housing Challenge
A tight housing market. New York City’s population has grown significantly in the last decade. Despite a recent boom, housing construction has been lagging far behind increasing demand. This has pushed up housing prices everywhere, and particularly in “hot” neighbourhoods in Manhattan, Brooklyn, and Queens. The lack of housing is marked by extremely low vacancy rates, particularly for lower rent units, growing waiting lists for subsidized housing, and record-high homelessness.
Affordability diminishing
The incomes of New Yorkers have not kept pace with rising housing costs. The average income for New York renter households grew just 3 percent from 1975 to 1999, but the average rent went up 33 percent. Even with the new financial incentives and subsidy programs introduced by Mayor Bloomberg in late 2002, the demand for affordable units is growing far faster than the supply.
A segregated city
Housing that has been built in the last 15 years has amplified race and income segregation. Most market-rate housing has been concentrated in the higher-income neighbourhoods of Manhattan and Staten Island, while affordable housing was primarily built in the lower-income neighbourhoods of Harlem, the Bronx, and Brooklyn.
Housing is a key element in a family’s ability to live in the city. Without new affordable housing in mixed-income communities, low- and moderate-income households will be forced into overcrowded and lower-quality housing situations or forced to move out of their neighbourhoods.
The Opportunity: Dramatic Neighbourhood Redevelopment Plans
The city of New York has significant power to shape patterns of development. Mayor Bloomberg has offered an ambitious set of redevelopment initiatives for New York City that include more than two dozen area-specific plans, in all five boroughs. These plans include: rezoning actions, targeted financial incentives, and public investments in infrastructure, transportation, and parks, as well as sports, convention, and cultural venues. The proposed zoning changes will alter the type and density of developments (residential, commercial, and/or manufacturing) allowed in each neighbourhood.