New York Governor Kathy Hochul wants to reshape New York's suburbs. Tackling the housing problem that in the southern region of the state is one of the governor's loftiest goals.
The "New York Housing Compact" aims to create 800,000 new housing units over the next 10 years to alleviate the situation. This represents 3% growth over three years aiming to overhaul areas near train stations on the outskirts of the New York metropolitan area. From Suffolk to Westchester, residents of towns in the suburbs fear that this plan will have negative consequences for their communities.
New York’s housing crisis has been decades in the making.
The #NYHousingCompact will give more New Yorkers housing options they can afford.
Learn more: https://t.co/yzF3cBGJcv pic.twitter.com/JvU2aCCTB8
— Governor Kathy Hochul (@GovKathyHochul) April 3, 2023
New York lagging in housing construction
The New York metropolitan area lost 180,000 residents between 2021 and 2022. Many people leave the region or the state in search of cheaper alternatives. This, however, has not solved the city's housing problem. Rental and purchase prices increased 50% in the last seven years in the New York metropolitan area. The increase in interest rates by the Federal Reserve severely affected mortgage lending and tightened loan conditions, further aggravating the situation.
Meanwhile, of the nation's major cities, New York lagged in new housing construction from 2011 and 2020, according to Census Bureau data. Mayors of towns in the metropolitan area oppose intensive construction (high-rise housing, among others) in their municipalities, which have mostly single-family homes. Mary Marvin, mayor of the distinguished and elegant town of Bronxville, N.Y., assured that many other mayors in the area share her same impression.
Bronxville, with a population of about 6,600, enjoys a refined style in its homes, which reach a median sale price of $2.3 million. In 2016, CNBC ranked the Westchester County town as one of the most expensive suburbs in the entire country. There, Governor Hochul's housing plan would include a total redevelopment of the area around its train station in order to build about 7,000 housing units, which would triple the population of the town.
Mayors against Hochul
Mayor Marvin won the endorsement of Democratic New York Senator Shelley Mayer, who, in a public letter to Governor Hochul, felt that the New York Housing Compact does not have positive applications in every municipality in the state. According to Mayer, the characteristics of Bronxville, or Westchester County, do not match those needed to alleviate housing needs, no matter how much is built.
Both the New York Senate and House of Representatives are rethinking amendments to Hochul's plan to avoid these impositions. Representatives from both parties have considered that it might be more effective to encourage construction in the localities on a voluntary basis, by means of financing and aid in exchange for the construction of new buildings.
