Wednesday, October 28, 2009

The never ending joke of affordable housing in NYC

From Economic Policy Journal:

The city says a low-income household is one earning less than 80 percent of the median income of $37,000 (by the way, if this is a relativistic definition based on a sliding scale, it's possible for a household to qualify as low-income making $150,000 if the median income is $200,000). The Furman Center at NYU says an apartment is affordable if it costs no more than 30 percent of a family's income. But what do the people say?

The people say all kinds of things about affordability. Some people are thrifty and won't spend more than 20 percent of their income on housing. Some prefer to spend more of their income on housing than on other monthly expenses and will spend 40 percent. Some think it's more "reasonable" to spend more if they conclude they're getting a safer housing experience, others spend less when they find their housing options to be inconvenient to their lifestyles. There's no right or wrong answer when it comes to individual perceptions of affordability... unless you happen to work in the mayor's office or on the campus of NYU.

Public housing programs and "affordable" housing regulations are a disaster. They punish and reward at random, they suppress profits and leech taxes out of private wealth that could be used to maintain and expand the supply of ALL private goods and services, including private housing, and they violate economic law in a tragic race-to-the-bottom. The more housing resources and wealth in general under control of the State and Michael Bloomberg, the less housing resources and wealth in general will be available to you, me and everyone else to do as we prefer with it.

Keep in mind, whereas the private sector does everything it can to try to promote the kind of quality, convenience, security and accessibility that maintain and drive property prices higher, it is the stated policy aim of governments everywhere to drive property prices and values lower. And while it is the competition of the marketplace which is the only phenomenon capable of actually achieving the government's aims (lower real property values), the government will nevertheless achieve one of its goals (lower nominal property prices) by inviting in all the crime and decrepitude normally found in government-owned ghettos the world-round, and spreading this social malice as far and wide as it is able to do so.

So, in a nutshell, Bloomie, you blew it. Your pursuit of "affordable" housing for the benighted people of NYC will forever remain elusive, but your success in visiting more stagnation, rot and hardship on those same poor people will indeed be great and remembered forever!


The U.N. is investigating affordable housing in NYC.

11 comments:

Anonymous said...

If they wreck and destroy the tenement you lived in in the name of luxury buildings for others, why shouldn't they rebuild your hovel?

Has New York City suddenly learned the magic way to subsist without bus drivers, clerical workers, restuarant workers, nurses aides or other poorly paid people? Or shall we all curl up next to the fire hydrant on the nearest warm grate this winter?

Too bad that people whose parents and grandparents built this city don't immediately decamp for parts unknown when it is convenient for their lords and masters.

Anonymous said...

Flyer from Bloomberg today:

"FIGHTING FOR QUALITY, AFFORDABLE HOUSING, FIGHTING FOR TENANTS RIGHTS."

Not one single word in this flyer is the truth.

He has refused over and over to fight for tenants rights in Albany (Home Rule, etc.).

He appointed people on the Rent Guidelines who will tell you straight out that the are against rent stabilization and are doing their best to destroy it.

There was an Architect on the RGB who voted against raising rent on SRO tenants and low and behold he was not reappointed (fired).

ONE BIG SCARY GUY - CAN'T UNDERSTAND WHY EVERYONE CAN'T SEE IT. I COULD SEE IT ON OUR PRESIDENT'S FACE WHEN BLOOMBERG WAS IN WASHINGTON.

Anonymous said...

"Affordable Housing" always a gimmick to get the great masses to go along with the destruction of their communities and the diversion of their taxes to developers.

Just a dribble to make it an option.

The only way to make housing affordable to to cut taxes and slashing wasteful spending and outragous retirement benefits.

kingb said...

all housing should be free market.
that is the only fair way and that is the only way it will work.

the current system unjustly rewards the lucky few or the well connected at the expense of many many more. and corruption exists up and down the system.

nyc housing policies are an absolute joke

Anonymous said...

KingB -

Only fair way? For who?

Not only Bloomberg out of touch, so are you. Come see my how my landlord (Lefrak)treats market rate tenants - no repairs building (Luxury?) staff cut in half, building getting filthy, nasty memos, no heat, roaches, mice, bedbugs and $200 t0 $500 rent increases - Why? Because market rate tenants now have no laws to protrct them. Rockefeller saw what was happening and quickly put Rent Stabilization back. He said landlords are out of control. Now it's evan worse.

Are you a landlord, uninformed or just don't give a dam about anybody else or your city?

Sam said...

KingB -

Only fair way? For who?

Not only Bloomberg out of touch, so are you. Come see my how my landlord (Lefrak)treats market rate tenants - no repairs building (Luxury?) staff cut in half, building getting filthy, nasty memos, no heat, roaches, mice, bedbugs and $200 t0 $500 rent increases - Why? Because market rate tenants now have no laws to protrct them. Rockefeller saw what was happening and quickly put Rent Stabilization back. He said landlords are out of control. Now it's evan worse.

Are you a landlord, uninformed or just don't give a dam about anybody else or your city?
==========

I agree with this comment all the way.

Anonymous said...

If all housing were market rate, the buildings would be in competition with each other and you wouldn't have these conditions.

Anonymous said...

Deregulation did wonders for the banks. Let's give landlords free reign. Only they know what's best for their tenants. Right, KingB?

Anonymous said...

Some of the worst slums in New York history occurred in the days when it was all, "Free Market."

This city is built on Islands, limited space, high demand means impossible prices and impossible people running the buildings.

Anonymous said...

They are in competition right now. And how are they doing that? Lies lies, lies. I call it fraud. No laws - no way to prove it.

Anonymous said...

Well ya know "affordable" housing has meant banks lending you 3 times your income and only after you put 20% down

Which means $99K condozes in Astoria ....just like they were right priced back in '99.

I pity the dummies who paid $300k for a 1 bedroom...they were a part of The MORON generation...and of course i am not and still renting at far less then it would cost to buy.