Fewer new housing permits were issued in NYC in the decade of the 2010’s than had been issued in NYC in the decade of the 1960’s. Think about that for a moment.
There were 400,000 fewer NYC residents in 1960 than there were in 2010. There were 1,000,000 fewer NYC residents in 1960 than there were in 2020 – one million. This NYC housing demand – housing supply imbalance is not sustainable. Limiting (or managing) NYC housing inflation just isn’t happening.
Free market proponents tend to argue that “the market” fixes market inefficiencies. Overall, not just in NYC. Maybe. Maybe not. In relation to NYC affordable housing, has the free market functioned effectively?
The free market has not been working well in relation to housing affordability. Not in NYC. Not beyond NYC. While the market has facilitated an expansion of real estate sales professionals, I would argue that too few of those sales professionals focus on business models that could reverse housing affordability problems. Even though, developing such a business focus could provide sales professionals with a very nice real estate niche. In NYC. Nationwide. That niche? Creating (and selling) more affordable homes.
Thinking About Becoming a Real Estate Developer? 