The Impact of New York City Real Estate Prices on the Middle and Lower Classes
The following report represents a comprehensive survey of literature pertaining to escalating real estate prices in New York City. The focus of the report is how increasingly expensive real estate prices for both sales and rentals are impacting the middle and lower-classes residing in the five-boroughs of New York City. The report includes an introduction that discusses the current affordable housing crisis in New York City, including factors responsible for it like the flight of many developments from subsidized affordable housing programs like Mitchell-Lama and Limited Development. An extensive literature review is then presented, one that discusses relevant factors impacting the lack of access to affordable housing for middle and lower-class residents. These include: New York City socioeconomics; real estate prices; the impact of Mitchell-Lama and Limited Dividend programs; plans for developing affordable housing; restrictions on affordable housing; and the business impact of the affordable housing crisis. A synthesis then presents the most significant factors that are reviewed in the literature that contribute to the current affordable housing crisis. Conclusions are then offered which posit a great deal of responsibility for the crisis on current administration policies and programs. A list of recommendations is then provided as a means for policymakers to resolve the affordable housing crisis in New York City.
Most cities struggle with the challenge of providing affordable housing to the working poor, but in New York City rapidly escalating real estate prices are challenging city planners to provide affordable housing to highly educated workers. The average rental price of a New York City apartment is $2,210 per month (Boss-Bicak 2004). The average purchase price of a New York City apartment is a record $998,905, according to the Dougl...