NYC’s Housing Crisis: Big
Developers, Politicians & Hotels

Take 478 Kent Avenue in Brooklyn, a recently developed high-rise marketed under the NYC Housing Connect program. The building boasts 378 luxury apartments, yet only 31 units are designated as affordable housing. That’s a mere 8% of the total apartments, leaving the vast majority of units priced for high-income renters. This pattern repeats across the city, where new developments prioritize market-rate units while offering a fraction of their inventory as affordable housing—just enough to meet regulatory requirements and qualify for lucrative tax incentives.

The False Narrative Against Small Homeowners

As these large-scale developments claim the majority of New York’s available housing stock, lawmakers and corporate interests have deflected attention by blaming small two-family homeowners. Many of these homeowners rent out their secondary units to cover mortgage payments, property taxes, and maintenance costs in an increasingly expensive city. Rather than recognizing their contribution to the housing supply, officials have vilified them, suggesting that short-term rentals are the reason for NYC’s housing crisis.

In reality, the biggest problem is the disproportionate allocation of new housing stock to luxury units, leaving working-class New Yorkers with limited options. The city’s housing lottery system, while intended to create equitable opportunities, often functions as a publicity tool rather than a genuine solution. The demand for affordable units far outweighs supply, with thousands of applicants competing for a handful of affordable units in each new development, while at the same time there are thousands of available “luxury” units in every neighborhood throughout New York City.

The Larger Trend Across NYC

The imbalance seen at 478 Kent Avenue is not an isolated case. Throughout New York City, similar developments are rising in neighborhoods once known for their affordability. Across Brooklyn, Queens, and the Bronx, luxury high-rises continue to reshape communities, offering only a token number of affordable units while driving up the overall cost of living.

At the same time, city officials crack down on small homeowners who rely on renting their extra units, rather than focusing on developers who profit from a rigged system. The result? A growing divide between those who can afford high-end rentals and those who are being pushed out of their own neighborhoods.

Who Really Benefits?

The biggest beneficiaries of this system are not working-class New Yorkers, but rather real estate developers, hotel chains, and investors who thrive on restricting affordable options. The billion-dollar hotel industry has also played a major role in this false narrative, supporting the misleading claim that small homeowners are taking up the housing stock. By lobbying against short-term rentals, hotel corporations ensure fewer affordable accommodations are available to visitors, driving up demand (and prices) for their own businesses.

Adding to the issue, some politicians are standing with the hotel industry, amplifying this false claim while ignoring the larger problem: the city’s willingness to approve high-rise luxury buildings with minimal affordable housing. Instead of fighting for real solutions, these lawmakers align themselves with powerful industry interests, leaving everyday New Yorkers struggling to find a place to live.

If city leaders were truly committed to solving the housing crisis, they would:

• Increase the percentage of mandatory affordable housing in new developments to at least 30-50%, rather than the current 5-10% norms.
• Support small homeowners who rent their additional units by offering incentives rather than penalties.
• Hold developers and the hotel industry accountable for contributing to the affordability crisis instead of rewarding them with tax breaks.

Blaming small homeowners for NYC’s housing crisis is a convenient distraction from the real issue: big developers, hotel chains, and corporate interests controlling the city’s housing policies. Instead of targeting struggling property owners who rent out extra units to survive, policymakers should address the unchecked luxury development that continues to erode affordability across the five boroughs. Until then, New Yorkers will continue to struggle to find truly affordable housing in their own city.