NY Candidates for Mayor Hurt Housing

The Real Estate Espresso Podcast

NY Candidates for Mayor Hurt Housing

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NY Candidates for Mayor Hurt Housing

Welcome to the Real Estate Espresso podcast, your morning shot of what’s new in the world of real estate investing. I’m your host Victor Menasce. This is not a political podcast; it’s a real estate podcast. New York City is an important market for real estate. I personally don’t invest in New York for reasons that many will understand. One of the problem is that New York City’s population is made up of 25% low-income families. As housing demand increases, rent prices increase as well, making affordable rents get pushed out of sight and eventually further away, increasing commute times.

The race for mayor in New York City is hotly contested with an incredible array of candidates. Their proposed policies could have sweeping impacts on the city of eight-and-a-half million people, which would affect other markets in a material way. Today, we’re going to examine the top three candidates according to the polling results and unpack what their platforms bring to the real estate market.

Firstly, there’s Andrew Cuomo, the former governor of the state of New York, who resigned in 2021. His real estate platform focuses on making the city more affordable. He proposes increasing affordable units at a rate of 30 to 50 percent of area median income while requiring higher median income levels in the same building for viability. He also seeks to strengthen tenant protections despite having signed the Housing Stability and Tenant Protection Act in 2019 as governor, which some argue has reduced housing supply.

Then we have Zoran Amdani, running for mayor. He’s a representative for Queensborough, one of the five boroughs in New York City. Endorsed by the Democratic Socialists of America, Amdani proposes rent freezes, universal childcare, higher taxes on corporations and the wealthy, free buses, and city-run grocery stores. Despite the assurances that his proposed programs have provisions to address certain challenges, his worldview seems disconnected from practical realities. He suggests that New York doesn’t allow for rooming houses in the zoning, and that the city’s zoning of wealthy neighborhoods is preventing new affordable housing.

Finally, we have Brad Lander, the current New York City controller. His platform is centred on ending homelessness and building more housing. A highlight of his plan includes declaring a state of emergency, which would cut red tape and help build half a million new units over 10 years. He aims to protect tenants, increase homeownership pathways and convert foreclosed hotels into supportive housing. Despite his good intentions, the memory of social housing projects from the past still linger and may affect his chances.

The unfortunate truth is that none of these candidates fully grasp the complexities of the housing market. It’s clear that more supply needs to be brought into the market. New York has plenty of empty office space. Office buildings are difficult to convert, but if it were possible, it would generate about 150,000 new apartments. Those who think they can demand greatness from a suppressed market are sadly misinformed.

As you think about these insights, have an awesome rest of your day and go make some great things happen. We’ll talk again tomorrow.

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