Home News Is Homeownership Slipping Even Further Out of Reach for New Yorkers?

Is Homeownership Slipping Even Further Out of Reach for New Yorkers?

by admin
0 comment

Jennifer Kopp first decided to own a home in her family as a child growing up on a public housing estate in Brooklyn’s Sheepshead Bay neighborhood.

This fall, that goal seemed closer. After more than 20 years of renting, Ms. Kopp was approved for a program that covers the down payment if she finds a home by December.

Municipal programs are called home first, is designed to provide loans of up to $100,000 to first-time buyers who are New York City residents with limited income. Her family of four, with an income of less than about $106,000, could qualify and potentially be forgiven for the loan if the recipient maintains the home as their primary residence, among other requirements. there is.

But Kopp, 42, quickly ran into trouble as an assistant with a young son. Her prices were out of her reach, boosted by a pandemic buying frenzy that left few homes on the market.interest rate, at highest level in the last 20 years, made the mortgage very expensive. Mr. Kopp, who earns about $45,000 a year from public schools in Brooklyn, may have to borrow retirement money or abandon the search.

“It makes people live paycheck to paycheck, trying to achieve a fraction of what they would once have called the ‘American dream.’ It’s literally becoming impossible,” she said. Told.

Given these widespread housing shortages and economic fluctuations, buying a home is becoming increasingly difficult for many Americans. Residents like may have to postpone their dreams indefinitely.

of the city Over 31% of home ownerswhich is almost the same as 2011 figures, about half of the nation and less than almost every other major American city. While nearly four times higher than median household income, New York City home prices remain more than nine times higher than that level. New York.

This situation heightens concerns for the city’s long-term health. As homeownership becomes more inaccessible, racial wealth disparities may worsen, displacing more middle- and working-class families.

“This is one of the really hard problems we have to tackle, otherwise we will end up with a city that only the very wealthy can afford.” Center for New York City Neighborhoods is a non-profit organization that promotes affordable homeownership.

Mark Willis, a senior policy fellow at New York University-Furman, said most renters in the city mirror other cities, reflecting the “huge flow” of people coming and going, especially Reflecting the young and transient people attracted to the job opportunities and cultural life of this city.Center.

“Homeownership doesn’t make a lot of sense if you’re not there long-term,” he said.

Jonathan Miller, president of Miller-Samuel, a real-estate appraisal and consulting firm, said the homes that are actually built tend to be more expensive because of the high cost of land and development.

Almost everything is now more expensive, mainly due to the lack of housing in the city. However, economic and social upheaval during the pandemic has exacerbated the situation.

“Housing prices have gone up significantly, and so have interest rates,” said Laurie Goodman, Institute Fellow and founder of the Center for Housing Finance Policy at the Urban Institute, a nonprofit research organization. increase. “As a result, affordability has increased significantly.”

Income needed to buy a home in the middle third of New York City’s market in September 2019 assumes a 30-year fixed-rate mortgage, according to Harvard Joint Center for Housing analysis It was about $117,450. the study. In September 2022, it jumped more than 59% to around $187,000.

Frederick Ferby Jr., 33, grew up with his mother in an apartment in Rockaways, Queens. This apartment had regular pests and other issues. His father struggled to maintain and repay the loan on his Jamaican home.

These experiences influenced Mr. Furby’s choice of where to buy a home.

An IT engineer, he paid about $700 a month below market rates for an apartment in Fort Greene, Brooklyn, and could afford a monthly mortgage payment of about $2,000. He looked at a few places in the Bronx that fit his price range, but none felt spacious enough for the price.

“It’s hard to find decent ones, at least in the Borough,” he said. He is currently considering moving to New Jersey.

Mayor Eric Adams has made promoting “affordable homeownership” and trying to bridge the racial wealth gap a key part of his housing plan. Black residents own about 27% of homes, while Hispanic and Latinx residents own about 17% of homes, well below the 42% of white New Yorkers.

“We want to put the dream of homeownership back in the hands of working people and remind New Yorkers that leaving this city is not an option,” the mayor said when he unveiled his housing plans earlier this year.

It’s unclear whether Black and Latino homebuyers are being hurt or helped by recent market shifts.A few Data Shows That in New York State and NationwideFrom 2019 to 2021, homeownership rates for black and Latino renters increased, according to the . This is probably partly due to low interest rates early in the pandemic.

In the most recent fiscal year, as part of its broader focus on homeownership, the city contributed $900 to help people make down payments and help finance the renovation of over 120 one- to four-family homes. spent millions of dollars.

But such efforts fall short of transformative public investments that could significantly increase home ownership rates. A new form of collective housing Owned by tenants and neighbors or non-profit organizations.

Housing advocates acknowledge that there are trade-offs in government investment in home ownership.

Because the cost of purchase is so high, public funds may not reach as many people as programs aimed at rentals. Enabling people to build wealth essentially means that homes are highly valued and not as cheap as they used to be.

“The government challenge is: How do we invest in affordable home ownership across generations?” said Peel.

Without additional assistance, owning a home remains out of reach for many.

A native of Bangladesh, Jewel Ghosh came to New York City in 2014 due to its large immigrant population and excellent public transportation.

Ghosh, a doctor, lived in a basement before moving into a two-bedroom apartment in Queens’ Ozone Park this summer. He currently lives with his parents, wife and baby boy.

He looked for bigger buyers. But the city’s health department employee, who earns about $70,000 a year and supports his entire family on that income, said he couldn’t afford to buy his $700,000 home on the market. .

“It’s my personal opinion that income and expenses are out of balance,” Ghosh said. “One of her basic needs, life, is very difficult.”

For teaching assistant Kopp, not being able to afford a house is one reason she dreams of leaving town. But she is afraid to uproot her own life and her son’s life.

“I have a city pension, I have health insurance, and I have a guaranteed job,” she said.

However, she added, “I definitely want to leave New York.”

You may also like