The problem with the real estate market in NYC is not that we’re building too much. The problem that we’re building too little.
Measures like occupancy taxes (or rather non-occupancy taxes) might help in the short term. They would be completely ineffective in the long term.
The only explanation for high prices in Manhattan and Brooklyn is that demand is high and supply low. There are some theories that this is intentional through lobbying of existing home owners. (see quote below)
Whether that is the case, the answer is to encourage luxury condos. As soon as the demand for that is sated, real estate developers will no longer want to build luxury condos. Then encourage mid-level housing. Let them build 1 or even 2 mile high building full of rentals.
Add zoning that forces developers to break these up ever 20 floors with public areas. This will take the crowds off the street level and start to make NYC a vertical city. Why should all the shops and restaurants be at ground level? Why not have a huge interconnected level 20 in all buildings?
Once demand for mid-level condos is sated, encourage super cheap condos. Again, give them the ability to build up. WAY up. Thats the only real way the future of NYC works
We’ll have more housing and people will be close to the places they want to be. To all the restaurants, arts, businesses and PEOPLE that make NYC the amazing diverse city that it is.
“[Why is Manhattan Housing So Expensive?] Because prices of existing homes rise when new construction is constrained, existing residents have a strong incentive to manipulate political and regulatory processes to limit new construction.” – http://www.nber.org/digest/mar04/w10124.html
^Day 11/90 296 words