Pro-Development Notes Sound. But Will New Housing Happen?

 

We ask noted New School urbanist Alex Schwartz about the new temper of the times in New York.

Urban Matters: Alex, you’re a nationally recognized expert on housing policy. In New York today, when it comes to new housing construction, there’s some strong pro-development sentiment at City Hall and in Albany, too. 

Mayor Eric Adams says he’s going to make New York “the city of ‘yes’” when it comes to  building housing. The mantra from his commissioners  is: “Cut red tape, get stuff built.” So, reality check: Is this all just rhetoric? How much difference will it really make, and how soon?

Alex Schwartz: It takes a long time for development proposals to wend their way through the approval process. A more streamlined approach may increase the chances that proposed projects will actually be built, and allow for them to be completed somewhat quicker.

Ramping up construction activity would help increase the overall housing supply, but that alone will not make the city discernably more affordable to most residents, low-income New Yorkers especially. Unless the housing is deeply subsidized and/or residents receive Federal, State or local rental vouchers, new construction will only be affordable to middle-income or more affluent households.  

Nationally, by the way, it is not evident that housing affordability problems are caused by inadequate supply. Research I am currently conducting with Kirk McClure of the University of Kansas shows that the key drivers of housing costs are employment growth and wage levels, not lack of supply. The main housing affordability problem is that renters lack the income to afford the housing that exists. 

UM: For a long time, “not in my backyard” opposition to many major developments has prevailed at the neighborhood level. But there seem to have been shifts in attitude there, too. The Queens borough president recently prevailed in a dust-up with a local City Councilwoman about approving a big new project in Astoria. A Council member in Harlem is taking a lot of flak for opposing a housing development there. Is there an anti-NIMBY wind stirring in New York City?

Schwartz:  It’s possible. The saga over the 145th Street development in Harlem – with the developer installing a truck depot on the site after the Council member vetoed a large proposed project with a substantial affordable component – may mean that Council members will not always be able to veto projects located in their districts. However, the tendency remains for local residents and their representatives to oppose real estate developments that would increase density and remake the urban fabric. 

UM: Governor Kathy Hochul also wants to give the State an option to override local opposition to new housing proposals And she’s pushing the idea of more new suburban apartments, especially near commuter rail lines.  How important could those measures be for New York City, and how likely are they to happen?

Schwartz: I think these proposals would apply more to suburban areas than to the city itself—although in theory the State could override moves by the City Council or the Planning Commission to reject major affordable housing proposals. The governor’s proposals resemble similar policies in other states, such as Massachusetts, where developers can petition the state to repeal negative decisions involving communities lacking the requisite amount of affordable housing. 

The governor is certain to face formidable resistance, as already happened last year when she withdrew a proposal to allow homeowners to install accessory units on their property. 

UM: Big new projects arouse controversy and grab headlines but, day-to-day, keeping existing housing in good shape is arguably even more important to meeting housing needs. The Community Service Society recently released a report saying the City does an inadequate job enforcing Housing Code violations, many of which seriously threaten tenant health and safety. What should City leaders do about that?
Schwartz: Preservation of the existing housing stock is crucial.  Not only is it imperative to enforce Housing Code violations, we must also do much more to fix the city’s public housing.  Without adequate funding, there is no way that NYCHA [the New York City Housing Authority] can replace roofs, windows, and elevators, remediate mold, and address public housing’s many other urgent needs.


Alex Schwartz is a professor at the Milano School of Policy, Management, and Environment at The New School. He is also the chair of the Milano School’s Master’s Program in Public and Urban Policy. He is the author of Housing Policy in the United States, now in its fourth edition.

Photo by: CNYCA staff