"Several factors contribute to this necessity. First, the cost of land and construction in New York City is exceptionally high. Developers must pay premium prices for land, especially in neighborhoods with access to jobs, transit, and amenities. Construction costs, fueled by labor, materials, regulatory compliance, and insurance, consistently rank among the highest in the nation. These expenses are compounded by zoning requirements, building codes, and environmental regulations, all of which are necessary for rational planning, safety and quality but further inflate costs."
"Second, market forces incentivize developers to maximize profits by building market-rate housing rather than affordable units. The rent and sale prices needed to cover expenses and provide a reasonable return on investment often far exceed what lower-income households can pay. Third, subsidies bridge the gap between what it costs to build and operate affordable housing and what tenants can afford to"
Zohran Mamdani won on a platform to make New York City more affordable and appointed Dean Fuleihan as first deputy mayor, bringing budgetary and financial expertise relevant to developers. Mamdani prioritizes increased housing production and affordability, which requires mixed-income developers to keep rents low while remaining profitable. Land and construction costs in New York City are exceptionally high due to premium land prices, labor, materials, regulatory compliance, insurance, tariffs, and inflation. Zoning, building codes, and environmental regulations further increase expenses. Market incentives favor market-rate housing, and subsidies are necessary to bridge the affordability gap.
Read at www.amny.com
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