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    Home»Real Estate News»Billionaires’ Row is Not Why New York City is Unaffordable

    Billionaires’ Row is Not Why New York City is Unaffordable

    Team_WorldEstateUSABy Team_WorldEstateUSAJuly 9, 2026No Comments4 Mins Read
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    Ben Kallos was upset. Not hostile, however positively not joyful.

    The previous Council member had known as this spring to object to my column about Hal Fetner’s failed try and construct housing on a NYCHA web site.

    This paragraph specifically bothered him:

    “Mayor Zohran Mamdani and different progressives are actually pushing for extra inexpensive housing in wealthier neighborhoods. The place had been these individuals in 2017 when Hal Fetner and NYCHA leaders had been getting pummeled by idiots like Ben Kallos?”

    “Idiots” was the flawed phrase. Nothing might be gained from calling somebody an fool, aside from a quick dopamine hit.

    Moreover, Kallos was like most Council members within the 2010s in that they failed to understand the urgency of constructing housing of every kind, not simply inexpensive, and didn’t combat constituents who opposed it.

    Because the supply-demand steadiness worsened, elected officials ruled with a mixture of financial ignorance, ideological blinders and political expedience. They weren’t idiots a lot as creatures of their surroundings.

    To elucidate my unlucky alternative of phrases, I instructed Kallos, “Effectively, I wish to be provocative.” Then I turned the dialog round and requested, “Had been any tasks constructed or accepted in your district throughout your tenure?”

    Kallos instantly rattled off all of the homeless shelters and supportive housing he backed from 2014 to 2021. “What I didn’t help,” he mentioned, “was housing for billionaires.”

    Sorry, not impressed. New York Metropolis has fewer than 150 billionaires amongst its 8.5 million people. What about outsiders? Rich nonresidents do purchase locations within the metropolis, however not sufficient to crowd out housing for New Yorkers.

    Their footprint is small as a result of in Manhattan the ultra-wealthy prioritize not land however views, the sort you get from towers (this full-floor condo unit, listed for $54.9 million, went into contract July 5). Wealthy consumers who need sq. footage and a yard buy a townhouse, double-wide if possible. Those that need each views and house purchase a duplex or triplex in a tower.

    “Housing for billionaires” shouldn’t be the supply of our affordability drawback. Opposing it scores factors for politicians however accomplishes nothing, aside from distracting from their different failures.

    Billionaires’ Row condos corresponding to CIM Group’s 432 Park Avenue, Vornado’s 220 Central Park West and Gary Barnett’s 217 West 57th Street do little to ease the housing disaster, however definitely don’t exacerbate it.

    Housing manufacturing within the metropolis has been pushed by 421a (mixed-income multifamily) and backed inexpensive tasks. The latter are not possible to construct in rich neighborhoods such because the Higher East Facet as a result of they can’t compete with market-rate tasks for costly websites.

    However the 421a tax abatement additionally didn’t create a lot housing within the Silk Stocking District. Aggressive rezoning in concept may have allowed some tasks to pencil out, however builders knew which Council members would refuse. Kallos, as he proudly acknowledged, was one.

    He deserves credit score for supporting shelters, which aren’t well-liked. Nevertheless, shelters don’t remedy homelessness. Housing does.

    Housing manufacturing in Kallos’ former district, which incorporates Roosevelt Island and a small piece of East Harlem, has been virtually nonexistent. It’s by far the bottom amongst Manhattan Council districts and among the many worst in New York Metropolis.

    Some years, the district really loses houses! That’s as a result of owners mix extra models than builders construct. In 4 of the ten years from 2014 via 2023, District 5 had unfavourable housing development. Its common yearly improve was simply 85 houses.

    Council districts have about 160,000 individuals. Eighty-five houses shouldn’t be even a rounding error.

    By comparability, 5 Manhattan districts gained between 250 and 700 houses yearly, one gained greater than 700 per yr and three averaged greater than 1,500.

    In October, the Mamdani administration will reveal the 12 least productive districts. Most might be middle-class and upper-middle-class enclaves dominated by single-family houses. A new rule will pace tasks in these districts.

    The fast-track rule wasn’t designed for dense areas, but the Higher East Facet may make the bottom-12 record anyway. Whether or not builders may discover viable websites there may be unclear, however not less than no Metropolis Council member may cease them.

    Learn extra

    In Bay Ridge, impossible to build becomes impossible to stop


    Housing suffers crushing defeat as mayor, speaker do nothing


    4 ballot questions could defang City Council’s stronghold over rezonings and housing






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