Opinion: Making homeownership affordable again through zoning

In a city where homeownership is increasingly out of reach, New Yorkers are struggling to secure a foothold in the real estate market. With the median listing home price in New York City at $799,000 – ten times the median household income – the dream of owning a home is fading for many. It's time for bold action to address this growing disparity and make homeownership a reality for the next generation.

As representatives of communities across New York City, we are calling on the city to explore a new zoning incentive program specifically tailored for affordable cooperative and condominium developments. This initiative would encourage the construction of affordable starter homes – modest, manageable units designed to be the first step on the ladder to long-term homeownership. 

Zoning incentives could allow for additional density in return for the new construction, substantial rehabilitation or preservation of affordable homeownership housing. The additional density generated can be utilized to increase residential floor area on-site or sometimes off-site by a housing developer. This additional density could create affordable cooperative or condominium apartments for sale as starter homes for New Yorkers.

Starter homes, typically one to two bedrooms and around 750-1,250 square feet, are a critical resource for first-time homebuyers. They offer an affordable entry point into the housing market, allowing New Yorkers to build equity and invest in their future. However, the current housing market in New York City is severely limited in its availability of such homes, leaving many families with few options. These homes are not meant to be forever homes. Instead, they are stepping stones – places where individuals and families live on average for three to seven years, build equity and then move on to larger homes that can better accommodate their growing needs. 

To address this gap in the market, we propose the Department of City Planning and the Department of Housing Preservation and Development design a zoning incentive to further encourage affordable cooperative and condominium developments. While the city's existing inclusionary housing incentives technically allow for affordable homeownership, these programs have resulted almost entirely in rental housing, with rare exceptions. We recognize that financial incentives and tax policy are additional important tools, but zoning is a powerful lever that the city controls without the need for additional action from the state or federal government. Review and approval of such an incentive would follow the same rigorous public review process as the recent “City of Yes” proposals, including necessary City Council approval.

The New York City Council will continue to push to expand critical affordable homeownership programs like HPD’s Open Door program and HomeFix down payment assistance that support this development across the city. We will also continue to call on New York state to invest its resources into affordable homeownership, not only rental housing development. Much more can and should be done on the side of subsidy to support affordable homeownership construction, but zoning is a tool we in New York City must also examine further.

We must recognize that the current focus on rental apartment development, while important, does not fully address the needs of New Yorkers who wish to own a home. By creating a new zoning framework that supports the construction of starter homes, we can balance the housing market and make homeownership more attainable. 

This initiative is not just about housing – it's about equity, stability and the long-term economic health of our city. Homeownership provides families with a sense of security and a stake in their communities. It allows them to become financially secure, pass down assets to future generations and contribute to the vitality of our neighborhoods. We can also move families seeking the stability of homeownership out of the rental market, so they will no longer compete with other renters for our limited rental housing stock.

As we look to the future, we must ensure that New York City remains a place where all residents have the opportunity to build a life, invest in their futures and achieve the American dream of homeownership. A zoning incentive program for cooperatives and condominiums is a crucial step toward that goal.

We urge the mayor to continue to lead the conversation in addressing this housing crisis by preparing the next conversation now. We also urge our fellow New Yorkers and city leaders to support this initiative and take action to make homeownership affordable and accessible for all. Together, we can create a city where everyone has the opportunity to thrive.