To lower housing prices in New York City, three strategies are critical: increasing housing supply through zoning reforms, streamlining development approvals, and expanding rent stabilization programs. Zoning changes should allow higher density in underserved areas, such as brownfields or areas near public transit. Streamlining the approval process for permits and reducing bureaucratic hurdles can accelerate construction. Rent stabilization laws must be updated to cover more units and prevent landlords from evicting tenants solely to raise rents.

The primary driver of high housing costs is chronic supply shortages. New York City’s housing construction rate has averaged only 10,000 units annually since 2010, far below the 30,000 needed to meet demand, according to the New York City Planning Commission. This deficit has pushed the city’s vacancy rate to 3.1% (U.S. Census Bureau, 2023), the lowest in the nation, forcing prices up. Zoning reforms in Brooklyn and Queens, which permitted 4- to 6-story buildings in areas zoned for 2- to 3-stories, increased permits by 30% from 2018-2022 (NYC Department of City Planning). However, even with this growth, the city remains 1.2 million units short of affordable housing (NYU Furman Center, 2022). Rent stabilization, covering 1.2 million units, has stabilized rents for 68% of renters but excludes newer buildings, allowing landlords to charge market rates. Updating laws to include all units and limit rent hikes could reduce displacement and stabilize prices. Taxing vacant properties, which account for 5% of the market, would incentivize reuse and lower speculative buying, as seen in a 2021 study showing a 15% drop in vacancy rates after vacant-unit taxes in Detroit. Expanding public housing, currently at 178,000 units, would directly target affordability. A 2023 analysis found that every $1 billion invested in public housing creates 10,000 jobs and reduces household costs by 20%. Combining these measures addresses supply gaps, curbs speculation, and ensures long-term affordability.