New York City is famous for its sky-high rents, but in a report released Monday, Mayor Bill de Blasio laid out a plan to tackle what he called a "crisis of affordability."
We should all be able to call New York home. #HousingNYC http://t.co/MhWJmMufg7
According to the report, stagnating wages, which over the last 20 years have only increased by 15% when accounting for inflation, are at least partially to blame for the housing crisis. Another problem is that for the first time in decades, more people are moving into New York than are leaving. That means demand is increasing faster than supply, which in turn sends prices skyrocketing.
The basic idea of de Blasio's plan is simple: Add way more housing to New York City. As the number of apartments increases, the prices should be driven down. That means in 10 years the average New Yorker should have more affordable rent.
To make this happen, de Blasio wants to build and preserve 200,000 affordable homes across New York's five boroughs over the next 10 years.
The report reveals that it should cost about $41.4 billion to build and preserve all the new housing. De Blasio hopes that most of that money — about $30 billion — will come from private developers.
The rest will come from the government, with the city kicking in $8.2 billion and state and federal monies adding up to about $2.9 billion.
De Blasio said in a news conference Monday that the plan “will be a central pillar in the battle against inequality," according to the New York Times.
Affordable housing is part of the bedrock that makes New York City work. #HousingNYC http://t.co/MhWJmMufg7
If the plan works it could reshape the city, creating new high-density development and lower rents. Still, de Blasio faces a daunting task; New York consistently ranks at the top of expensive cities lists.