Feb 14, 2025
New York City’s housing crisis is nothing new, but as affordability continues to shrink, it’s clear that past solutions might hold the key to the future. Throughout its history, NYC has successfully built, preserved, and expanded affordable housing through public initiatives and labor-backed cooperatives. Yet, in today's real estate market, such models are increasingly rare. The question is—can the city find its way back?
A walk through Chelsea tells a story of two vastly different approaches to housing—one that prioritizes real estate as an investment, and another that treats housing as a public necessity.
Hudson Yards stands as a prime example of what happens when private interests drive housing policy. The glossy skyscrapers may have transformed the Midtown skyline, but at what cost? Built on formerly public land with $2 billion in public funding, Hudson Yards has become a luxury enclave, inaccessible to most New Yorkers.
This highlights the challenge of relying on private developers to address housing needs. While projects promise “mixed-use” spaces, they often fail to deliver meaningful affordability, reinforcing the city’s growing inequality.
Not far from Hudson Yards, the Elliott-Chelsea Houses—public housing developments—tell a different story. NYCHA has long faced funding shortfalls, leading to deteriorating conditions.
In response, the agency has attempted to transfer management to private companies, a model seen in other global cities like London. But history suggests this leads to higher rents, fewer tenant protections, and displacement, rather than real solutions.
Just across Ninth Avenue lies Penn South, a 2,820-unit cooperative developed by the United Housing Foundation (UHF) and NYC labor unions in 1962. The key difference? Penn South operates as a limited-equity cooperative, meaning residents can’t sell their apartments for a windfall, keeping prices stable.
Despite pressure to privatize in the 1980s, residents voted to maintain their non-profit status—ensuring affordability for future generations. The result? Thousands of working-class families have been able to live in Manhattan at a fraction of market costs.
New York City has proven it can build affordable housing at scale. The UHF constructed 30,000 cooperative homes across the city, quickly and efficiently. Public housing and union-backed co-ops weren’t perfect, but they succeeded in one key way: they provided long-term affordability.
The city’s new zoning initiative, the City of Yes, aims to create more housing, but unless it includes stronger commitments to affordability, it risks repeating the same mistakes. The private market alone won’t fix the crisis—it will take political will, public funding, and labor advocacy to bring back models that prioritize people over profits.
If NYC wants a future that looks more like Penn South than Hudson Yards, it must take bold action. Affordable housing isn't just a policy issue—it’s the foundation of a livable, thriving city.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
