Seth Pinsky, who headed the NYCEDC under Mayor Bloomberg, says no, according to an article in this week’s Real Estate Weekly; and he hopes that Mayor de Blasio’s delayed affordable housing plan will focus mainly on creating units for low-income residents, who really have no market options remaining.
Pinsky’s is an interesting analysis. Basically, he seems to be saying that if the city builds a lot of middle-income housing, it may deflate the housing market pressures that are causing middle-class relocation — a phenomenon that should be sustained, because it improves the city’s marginal neighborhoods. In so doing, the city may also take some pressure off the poor, but only by leaving them in their current, decrepit units. If, on the other hand, the city builds a lot of low-income housing, then the very poor will get fresh new apartments, which will represent an improvement in their living standards; and the city’s middle-class will continue to respond to the increasing expense of prime locations by relocating in patterns that improve the city’s marginal neighborhoods. At first glance, the first approach sounds self-defeating, while the second approach sounds like a win-win.
The problem is that, historically, we’ve tried the second approach. We’ve had the experience of building large numbers of fresh, clean units for low-income residents, and this did not work out very well. The housing projects of the 1950s-70s enjoyed very short honeymoons before they turned into urban dystopias. Sociologists had a number of theories about what went wrong (e.g., the scale of the developments, their concentrations of poverty, elevation from the street, lack of ownership). We don’t really know what combination of factors went wrong in public housing, which is all the more reason to be cautious about making the same mistakes, again. As a counterpoint, middle-income housing in New York City (and elsewhere) has worked — whether in the form of Mitchell-Lama rental apartments, limited-equity cooperatives, or simply market-built modest housing units in suburban-zoned neighborhoods. In addition, middle-income New Yorkers are not without options. Accordingly, they have some leverage, and the city’s housing policies ought to acknowledge it.
I’m sympathetic to Pinsky’s analysis, and I do think middle-class housing pressures have had a beneficial effect on many of the city’s formerly marginal neighborhoods. And obviously — as challenging as it can be to live on a moderate income in greater New York — the situation is much more desperate for those who are genuinely poor. But Pinsky’s approach strikes me as too simple, for a couple of reasons. First, there’s no way that even the most ambitious middle-class housing proposal from City Hall would result in enough new units, in a short enough time, to deflate the market pressures that are reviving the neighborhoods on the frontiers of gentrification — or to move those frontiers deeper into the city’s fabric. Second, there’s scant evidence, in the history of urban planning, that public efforts to develop large numbers of new housing units, exclusively for the poor, can result in the kinds of neat-and-tidy improvements to urban poverty that proponents of such efforts would like to see. In fact, these efforts almost always backfire.
Ideally, the regulation of land use would be liberal enough for development to keep up with demand, across the various tranches of the city’s real estate market. But it’s not, and this means that additional efforts have to be made to advocate for the development types that are most needed. Today’s city needs more housing for everyone.