Land Prices in East New York Nearly Triple

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    The mayor’s affordable housing and rezoning plan seems to be causing real estate speculation, which could make the plan difficult to carry out. Land prices for development properties in East New York have nearly tripled in one year, from $32 a square foot to $93 a square foot, reported The Wall Street Journal. (Though a careful look at the Journal’s accompanying graphic seems to show an unexplained spike in 2011.) The sample size was very small, as both the Journal and Gothamist pointed out, but affordable housing developers said land is already too expensive for them. Even if affordable housing is built, it could have unintended consequences, according to the story.

    “The de Blasio administration wants to create significant new development in East New York but without price increases that push out existing residents. That could be hard to do. The average rent for a one-bedroom apartment has risen 10% to more than $1,200 a month from $1,082 a month in 2012, according to Nancy Packes, a development consultant.”

    Higher Land Prices Test Affordable-Housing Plan [WSJ]
    City’s East New York Study Included Only Five Properties [Gothamist]

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