Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
East New York Real Estate Prices Tripled Overnight
By
Christopher Robbins
Published Sep 29, 2014
Modified Sep 29, 2014
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
Sustainable Communities: East New York
By
Christopher Robbins
Published Sep 29, 2014
Modified Sep 29, 2014
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
The neighborhood that's supposed to be the model for new affordable housing developments is rapidly becoming unaffordable. East New York is the first of 15 sites to be developed under Mayor de Blasio's $41 billion housing plan that promises to build or maintain 200,000 units of cheap housing, but according to the Wall Street Journal, land prices there have almost tripled, from $32/square foot to $93.
Apartments in East New York now sell for $155/square foot, up from $143 last year.
In the first half of 2013, there were $2.7 million in real estate transactions conducted in the neighborhood. In the first sixth months of 2014, that number rose to $42 million.
In 2010, a housing complex with 43 affordable units received 15,000 applications.
How is the city's strategy of coaxing private developers to build affordable units supposed to work if getting a return on their investment is made exponentially more difficult?
If affordable rents in a neighborhood where the area median income hovers around $32,000/year (the city's median is $52,000) range from $375 to $625/month, but 80% of the development's housing will be built for those paying considerably more than $630, who is actually benefiting from this "affordable" housing?
In July, the executive director for the Department of City Planning, Purnima Kapur, told us that the city had commissioned a study to examine "what it is that market can support in terms of how much affordability we can ask from a private developer."
Now they might need a new study.
[UPDATE] Wiley Norvell, a spokesman from the Mayor's Office, emailed us this statement regarding the East New York study:
The sample size used in our study area of East New York is only five sales. This is hardly a scientific or exhaustive sample on which to draw conclusions. Moreover, there is a significant difference between land prices and rents that impact a tenant or small business. Someone may in fact purchase a building hoping or expecting that the City will allow for greater height or density. Their decision to pay more for the real estate is a reflection that a three story building could one day be a six story building, making the parcel more valuable. But that does not mean that the price per square foot that a tenant would pay for a one bedroom apartment or a storefront is increasing. Most importantly of all, no one will be able to build in the new zoning envelope without a significant provision of affordable housing. The result of the rezoning will be more affordable housing, not less.
Tagged
affordable housing
affordable housing crisis
east new york
gentrification
real estate
well we tried
Christopher Robbins
Christopher Robbins is a New York City reporter covering transportation, affordable housing, local politics, and criminal justice. His work has also appeared in New York Magazine, The Village Voice and The New York Times. Chris is a graduate of Patrick Henry High School in Roanoke, Virginia, and enjoys biking to Fort Tilden in the summertime.
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Staten Island fire injures two, but spares historic 'Godfather' church
Dozens of firefighters responded to the blaze, which started in a vacant warehouse. It was contained within three hours.
By
Giulia Heyward
Published Oct 18, 2026 at 10:34 a.m. ET
Bail reform remains major issue in NY governor's race, 7 years after it became law
Repeat offenders are a big talking point in the governor's race.
By
Gino Fanelli
News
Bail reform remains major issue in NY governor's race, 7 years after it became law
Repeat offenders are a big talking point in the governor's race.
By
Gino Fanelli
NYPD searching for 'person of interest' in fatal Midtown subway platform shooting
By
Ryan Kost
and
Elizabeth Kim
Have you seen this Yorkie? NYPD looking for adorable pup dognapped from her Queens home
By
Ryan Kost
Being reigning champions is weird for Knicks fans, but we could get used to this.
By
Catalina Gonella
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .