July 25, 2006

Residential RE Squeezes Industrial Nabes

A lot of concern has been raised about the survival of the industrial sector in the city, and much of the worries stem from the encroachment of residential property on land used primarily for industrial uses, whether it be through zoning variances, or illegal conversions. The residential real estate market has put enormous pressure on the industrial sector. In response, Bloomberg - in cooperation with advocacy groups and business leaders - has created a centralized agency to coordinate the effort to help the sector, initiated protective boundaries around the city called Industrial Business Zones, and has increased penalties and patrolling for illegal residential conversions.

A more complete look at the issue after the jump...

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Posted by Mike Muller at 11:00 AM | Comments (0)
Categories: Economics

Commentator Balks at Mayor's Housing Plan

Arguing that Bloomberg's affordable housing plan will in effect increase housing costs for middle-income New Yorkers, Nicole Gelinas, of the Manhattan Institute, outlines the theory that regulating prices acuses supply to become restricted. The result? Housing becomes more valuable and prices rise for living space still on the free market. She also makes the generalized argument that rent stabilization leads to the deteriorization of housing conditions by depriving landlords of revenue needed for upkeep, forcing them to cut corners. Granted, some single mothers may not be able to afford their apartments without government regulations, she says, but that's "a problem of the dysfunctional underclass."
Bloomberg's Housing Horror [NY Post]

Posted by Mike Muller at 9:30 AM | Comments (21)
Categories: Economics

July 21, 2006

Brooklyn's Labor Market

Brooklyn is not fulfilling its potential in the retail market, and construction jobs are not keeping pace with the number of construction projects in the borough, says a recent report on the labor market in Brooklyn, published by the Brooklyn Chamber of Commerce. While the number of jobs in Brooklyn grew 1% in 2005 - the highest percentage occuring in culture and recreation - the 6.2% unemployment rate still lags behind the citywide average of 5.5%. Commanding the labor market is still the public sector, at 41% of all jobs in the borough. Wages have kept pace with inflation, but also remain below city average. The overall number of residential building permits issued almost doubled between 2001 and 2005. In 2005, 1,600 were issued, at a total of 9,000 units - coming in just over Manhattan, which totaled 8,500.
Brooklyn Labor Market Review [Brooklyn Chamber of Commerce]
Chamber's 'Target': Shopping [Brooklyn Papers]
Photo by Rob Innes.

Posted by Mike Muller at 11:32 AM | Comments (0)
Categories: Economics