Creating Affordable Without Reducing Luxury

NEW YORK CITY-New York City contains almost 9 million residents and only a little over three million units of housing. For decades, the supply of housing has not been able to meet the high demand, which explains the high rents and its affect on the cost of living. However, residential development should not be considered a zero sum game, nor is inclusionary housing the only solution to New York’s perennial shortage.

Notwithstanding the rhetoric in an election year, New York needs every form of housing. Luxury residential developments produce a windfall of real estate tax revenue. In addition, wealthy residents spend money in the city, create employment opportunities and provide tremendous  sums to  philanthropic organizations, regardless of whether or not the owners also become New York residents and pay income taxes. Mandating the development of affordable housing will not necessarily create a significant amount of affordable residences, primarily because of the need to obtain financing for these types of projects.