As per the Real Estate Board of New York, New York City’s Real Estate industry created almost $32 billion in taxes a year ago, 53 percent of the city’s expense income, and it employed almost 275,000 individuals. Land colors the expectations and plans of innumerable individuals, organizations, and policymakers.
To sort out what may occur in the following year or two, the New York Times met about 50 individuals including former senior city officials, real estate executives, affordable housing advocates, urban planners, and brokers.
Residential real estate sales dropped 40% in July, and 57 percent in August, compared with 2019, as indicated by the New York City Comptroller’s Office. Commercial deals were down 28 and 43 percent in July and August, compared to a year ago.
Yet at the same time, numerous specialists forecasted that New York will eventually bounce back like it did eventual after the Great Recession, 9/11 and the fiscal crisis of the 1970s.
The Department of Housing Preservation and Development, which funds and maintains much of the city’s affordable housing stock, suffered a great loss this summer, when the city decided to decrease its capital funding by 40 percent over two years.
Executive director of the New York Housing Conference, Rachel Fee, predicted 21,000 fewer new and preserved affordable housing units and 34,000 fewer jobs, mostly in construction and related industries. In a reversal, the city said Thursday that it would restore almost half of the funding that had been scheduled to be cut.
The cuts could delay a number of projects. For instance, in Far Rockaway, Queens, an 11-building complex called Edgemere Commons with more than 2,000 units, all of which would be offered below market rate, was scheduled to receive city financing in December, but a backlog of stalled closings this summer means their project will likely be pushed back further.
Daniel Moritz, a principal at Arker Companies, the developer, planned to begin construction this year.
Ron Moelis, a co-founder of L+M Development Partners said that it could cost millions of dollars in predevelopment like architectural plans, legal fees and engineers that can overwhelm developers awaiting funding. His company expected to close city financing in June on the first phase of Bronx Point, a mixed-use project in the South Bronx with 542 below-market-rate units expected to be completed by 2023. Now financing has been pushed back until at least December.
In September, a survey conducted indicated that about 85,000 apartments in New York, nearly 20 percent of tenants paid no rent, according to CHIP, a group that represents 4,000 landlords and managers of primarily rent-stabilized buildings.
Rafael E. Cestero, a former housing commissioner who is now president of the Community Preservation Corporation, a nonprofit housing and finance company mentioned that experimenting with new methods to create or preserve more affordable housing is very important.
The Regional Plan Association estimates that 500,000 new homes, including 100,000 in New York City, can be created at a minimal cost if state and local governments make it easier for basements, garages, and attics to be converted into legal dwellings.
Meanwhile, the New York City Housing Authority, the landlord for one in 15 New Yorkers, is exploring new ways to increase funding. The agency needs $40 billion to fix issues including mold, lead abatement, and deferred maintenance in its 170,000 apartments across 2,252 buildings.

Leave a Reply

Your email address will not be published. Required fields are marked *