Mike Petrucci from Unsplash. (n.n.). https://unsplash.com/@mikepetrucci. https://www.bisnow.com/new-york/news/construction-development/new-apartment-construction-is-lagging-in-nyc-worsening-housing-crisis-for-years-to-come-112183
New York City has a problem and it’s not a new one. Simply put, there are too many people and not enough apartments and that’s creating a supply-demand imbalance. By 2024, NYC is expected to have 33,000 new units becoming available which may sound like a lot but it’s not when you consider that the city needs an estimated 560,000 new units by 2030. At the current pace, it would take more than 46 years to hit the number of units needed by 2030. Oops, but it gets worse. The anticipated supply shortage will certainly put pricing pressure on the rental market making it a “rough ride” for many ordinary folks, according to Corcoran’s CEO, Pamela Liebman. Furthermore, higher development costs, impending inflation, and flawed city policies that defy basic economic principles (i.e., keeping one-third of the housing stock priced artificially below market through rent regulation) will undoubtedly extend NYC’s housing crisis well into the future.
The data don’t lie: rent in NYC increased by 33% between January 2021 and January 2022. Oh, Superman, where are you now?
Hall, Miriam. “NYC’s Housing Crisis Set to Worsen amid Lag in Apartment Construction.” Bisnow, 9 Mar. 2022, www.bisnow.com/new-york/news/construction-development/new-apartment-construction-is-lagging-in-nyc-worsening-housing-crisis-for-years-to-come-112183.
This is super informative!