On Thursday, Mamdani met with Trump to discuss investment in a 21 million dollar housing project in queens desgined to build 12,000 homes near the busiest rail in the city. New York, like many big cities are struggling with a housing crisis, due to the high demand and lack of rising supply of housing. Economically, this has been linked to the high regulatory cost of building affordable housing in cities like New York. An investment in affordable housing would benefit many struggling New York families, but it may cost more than estimated, and it is going to be hard to raise such funds. Apparently, although critical of Mamdani from the start, Trump seemed 'enthusiastic' about the project, and may be on board (perhaps due to the fake newspaper Mamdani's team created). It will be interesting to see if MAmdani's charm and Trump's desire to be seen as powerful and likable will lead to his support of such a progressive investment.
I think this investment would be great and could help lower rent prices, but do you think there’s a risk of rents becoming too low for landlords? If rent doesn’t cover costs like maintenance or taxes, some owners might leave units vacant or sell instead of renting. Still, in high-demand cities like New York City, it seems unlikely rents would drop that low because demand is strong.
ReplyDeleteIf housing supply were to increase in areas with a high demand for it, how do you think that would affect the price of housing in comparison to finding consistent price growth?
ReplyDeleteI am interested to see how Mamdani's supply-side approach to fixing the housing affordability crisis plays out. Many economists believe that housing is inherently not driven by supply factors because there is only a finite population. While I disagree with this theory, I'm interested to see what is effectively a real-world experiment on these ideas.
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