CactusBoyScout OP t1_j0gmvss wrote on December 16, 2022 at 2:34 PM

Reply to comment by InfernalTest in Gov. Hochul pushes plan for 800K housing units to help spur NY’s post-pandemic economy by CactusBoyScout

It doesn’t matter if they’re market rate or not. It still helps the overall housing market.

Even if you can’t personally afford a unit, as long as someone moves into it, that person is no longer competing with others for more affordable units.

Any increase in housing supply is positive.

InfernalTest t1_j0gr721 wrote on December 16, 2022 at 3:05 PM

ok i dig that but firstly thats that theory -and secondly the price doesnt move there are plenty of new apts going on the market but they are for people who can "afford" to get into them - they dont need a lower price point.

so the issue isnt that there need to be more 2500 apts on the market

the issue is that there needs to be 1000 and 1500 apts on the market for those people who cant afford 2500 a month on rent -

so it still stands - how is increasing the amount of unaffordable apts some how going to get it to where those apts are "affordable" for the poeple that need 1000 to 1500 a month rent because their saleries can afford much more than that?? no one can really point a specific example of how having an increased supply of apts lowers the monthly rent unless of course its in a collapsing or collapsed market.

CactusBoyScout OP t1_j0gss9w wrote on December 16, 2022 at 3:16 PM

They're not unaffordable to everyone. People are renting all those market-rate apartments that get built. The vacancy rate is extremely low.

I already explained how it helps. It preserves more affordable housing by preventing gentrification of existing housing units.

And presumably these new buildings will also increase the affordable housing supply because 25% of the units will have to be set aside for lower income people... that happens with most new developments in NYC. 1/3 of the new units added over the last few decades have been permanently affordable.

Rents are never going to go down until the rate of construction surpasses the rate of population growth... or there's a mass exodus like during COVID. Otherwise our shortage just gets worse every year. And NYC has been growing in population 5x faster than housing supply has grown for the past few decades at least. In that context, new construction can only slow rent increases.