as Elliman Manhattan Market Overview (Economic 2004). According to New York City Comptroller William C. Thompson, Jr. (2004), ôAccess to affordable and safe housing is one of the most critical challenges facing New York Cityö (1).
There are a number of factors that contribute to the lack of access to affordable and safe housing in New York City. Chief among these are rapidly escalating rental and purchase prices. New York City and State have a history of assisting developers with low-interest loans, tax abatements, and direct subsidies to promote the construction of affordable housing. However, the two most successful of these initiatives, the Mitchell-Lama and Little Dividend programs are in jeopardy. The Mitchell-Lama and Little Dividend programs provide 292 housing developments throughout New York City, including 149,000 units of affordable housing (Thompson 2004). Of this number, 124,991 units remain but ten developments have left the programs since 2000, with another eleven developments submitting notice to leave the programs (Thompson 2004). Thus, the pace at which developments are leaving these programs creates even less access to affordable housing for middle and lower-class individuals.
Other trends have served to undermine access to affordable housing in New York City. From a growing number of immigrants and unemployed residents to building restrictions and redevelopment projects, access to affordable housing continues to represent a critical issue for city planners. For example, building restrictions, zoning laws, and other factors create costs of construction for new housing. According to Glaeser and Gyourko (2003), a housing affordability crisis exists when the price of purchase significantly exceeds the costs of construction. However, in a comprehensive study conducted on affordable housing in the U.S., the authors conclude that in most places in the country housing prices are ôfairly closeö to the cos...