Recession Hitting Low-Income Housing Hard
This time it’s different. In past real estate downturns, builders of affordable housing have managed to stay busy, as the demand for below-market apartments is constant. With a $14 billion budget gap, however, the state is cutting back its allocation to low-income housing (like Glenmore Gardens in East New York, at right) by 2/3, from…
This time it’s different. In past real estate downturns, builders of affordable housing have managed to stay busy, as the demand for below-market apartments is constant. With a $14 billion budget gap, however, the state is cutting back its allocation to low-income housing (like Glenmore Gardens in East New York, at right) by 2/3, from a little over $300 million last year to $105 million this year, reports The Observer. This on top of a decline in federal incentives. It’s certainly the most challenging time that I’ve seen in the affordable-housing business, said Bernie Carr, executive director of the New York State Association for Affordable Housing, an industry group. Generally, we’ve weathered recessions pretty well—it’s a countercyclical business. To make matters worse, Governor Patterson is trying to raid a key affordable housing trust for the city. More evidence that, certain people’s schadenfreude notwithstanding, the housing bust and associated heavy-duty recession aren’t just knocking down brownstone buyers a few pegs, they’re hurting those on the bottom rungs as well.
Why Low-Income Housing Can’t Afford the Recession [Observer]
Photo from Apartment Therapy
Very true, flatbushed. I know someone who has had a rent controlled apt in NYC for I think more than 30 or 40 years and lives in California. But let’s hope and pray that’s not typical.
The What, so you are against gentrification AND you are against rent control? But you also don’t like declining rents? You want rents to be higher?
“Rent DE-control spurs gentrification, which you claim to be against.”
Oh clueless one you do not want to live in apartment building with “falling rents”. Trust me on that one. You see Mopar I had to go to people houses and they lived like dogs.. I think that the retards are going to get a taste of that in the upcoming depression….
The What
Someday this war is gonna end…
mopar – people do hoard apartments. christine quinn has a place in chelsea and a place in new jersey. charles rangel has properties all over the map. if these people were made to pay fair market rates for their apartments they might consider giving up their free ride and letting someone else enjoy the city.
The What, did you misunderstand my post? Or did I misunderstand yours?
Rent DE-control spurs gentrification, which you claim to be against.
Even in times like now when rents are flat or declining.
“As for rent decontrol, it’s not going to “free up” thousands of apartments. People aren’t hoarding apartments under their pillows, they’re LIVING in them. Rent decontrol does not increase the vacancy rate, rather it increases rents. ”
I’m so sorry you are stupid… New York City is in big trouble and the sad thing is that most of the “Retarded Nation” has never experienced NY in a economic downturn. Keep clapping your Asschecks and repeat “Things will never get bad”!
Game Over…
The What
Someday this war is gonna end…
Yes, thats the plan.
dittoburg,
Are you talking about the city plan to buy luxury apartments and turn them into affordable housing? I’m aware of it, but I don’t see it happening in any meaningful way.
There might be a chance of the free market working IF protections were eliminated for both renters and landlords. Fat chance, lol!
Let them eat granite kitchens!!!
The What, did you see the NYT story on the de-cheese boutiquing of Los Angeles?
http://www.nytimes.com/2009/02/26/fashion/26eaglerock.html?_r=1&8dpc
Actually, it’s really about the closing of yarn stores and gift shops, which aren’t really terribly useful businesses.
I predict rents in the so-called “luxury” apts (and they’re not really that luxurious — more like overhyped studios) will merely fall from $4,000 to $2,400 a month. Hardly affordable housing for the masses. But it might free up the pressure that is causing recent college grads to seek out housing further and further out in Bushwick and Bed Stuy, which in might keep rents there from rising past $1600.
Rents in those areas are still pretty reasonable.
As for rent decontrol, it’s not going to “free up” thousands of apartments. People aren’t hoarding apartments under their pillows, they’re LIVING in them. Rent decontrol does not increase the vacancy rate, rather it increases rents. Unfortunately, for retired people who were low income earners, that change means they will have to apply to single-room government housing by lottery.