Flood of New Construction is Now Weakening Rent Prices in NYC

[bullandre]

Originally Posted by BBMW

Most of the development is completely private. HY may be an exception. But around me (which IIRC is around you also - UES/Yorkville) there's a huge amount of development going on that's completely private, I'm not even hearing there's a affordable component.

And even when they do affordable, it's not free money, they could get double or triple the affordable rents, and the money they do get is on the back end, in the form of tax abatements.

Of course they can get that but remember without the affordable component they would face fierce opposition from the community boards, city council and other elected officials. That's why the city has all these Inclusionary Housing programs that "rewards" developers/investors with zoning changes, more squ footage etc. for token affordable housing. Don't discount the draw of the tax benefits especially tax credits.

[BBMW]

That only comes into play for projects that need variances. If they're building as of right, which all the projects around me are, they don't need approval from the local politicritters. The sole reason the developers do the affordable component in these cases, is for the tax abatements.

Originally Posted by bullandre

Of course they can get that but remember without the affordable component they would face fierce opposition from the community boards, city council and other elected officials. That's why the city has all these Inclusionary Housing programs that "rewards" developers/investors with zoning changes, more squ footage etc. for token affordable housing. Don't discount the draw of the tax benefits especially tax credits.