City of Hell Yeah
Some positive real estate news to end your week
As expected, City Council passed City of Yes on December 5th by a vote of 30 to 21. It was not the original proposal:
The Council pushed for weeks to get City Hall to commit capital funding alongside the plan, arguing that zoning reforms alone weren’t sufficient to address the housing crisis. The $5 billion secured as part of the deal up for a vote this week includes money for NYCHA repairs, rental vouchers and infrastructure upgrades to address flooding, among other initiatives.
Lawmakers also negotiated a number of modifications to the plan—in response, they say, to concerns from the community aired during public review. These include affordability incentives for developers of larger buildings in certain neighborhoods, who will have to make 20 percent of their units income-restricted if they want to take advantage of the new allowable zoning.
The changes should allow for 80,000 new units in the next 15 years. Is that enough to make a significant dent in our housing crisis? Not really. But it’s more than we’ve gotten in the past few decades and it’s just one piece of the puzzle.
Alexander Brothers Arrested in Miami
Oren, Tal, and Alon were arrested on sex trafficking charges this week and are being held without bail. Cheers all around.
I’ve been obsessed with this story, both because I think a group of brothers who spent decades r*ping women (allegedly) deserve to face consequences and because of how common similar behavior is in real estate. They are the most extreme example, but women are treated horribly by so many men in this industry. They sexually harass us, undervalue and underpay us, and believe themselves superior despite all facts to the contrary. As I told BBC’s World Service, the most accurate thing about Selling Sunset is two unimpressive men helming a company while the women “under” them do all the work. I am so, so glad to be at a female-led Sotheby’s office.
I never met the brothers, but there are now Instagram ads for survivors to file civil suits against them. I hope that this creates change industry-wide, although I won’t hold my breath.
The Fed Cut Rates Again
For the second time this fall, Jerome Powell cut the federal funds rate to 4.58%. That’s a total 75 basis point drop, with another 25 point drop expected next week to combat rising inflation.
Mortgage rates are still high, don’t get me wrong, and they’re not totally correlated with the Fed’s actions. Mortgages are more tied to 10 year yield than Federal interest rate. But the people want to read about Powell and I give the people what they want!
Get Back Your Security Deposit
This isn’t “good” news in and of itself, but it’s good that people are paying attention. One of the big goals with FARE was to make enforcement easy and the penalties for breaking the law clear, because that’s usually an issue.
Many landlords simply don’t return security deposits. Even more don’t follow the letter of the law with how they need to be held. And that needs to change.
FARE Effect StreetEasy Report
StreetEasy is a big supporter of FARE, which I didn’t realize until the post-vote Instagram battle between every normal person and REBNY’s pet agents. But StreetEasy is ready with data that shows move-in costs will reduce 42% for listings that currently have a fee. That is HUGE. So many people stuck in questionable living situations will finally be able to move.
Do you know why StreetEasy is a supporter of FARE? Because they charge $7/day to list units on their site. They know that removing these exorbitant up-front fees will lead to more people moving and more listings, which will make StreetEasy more money. This really flies in the face of REBNY’s whole “FARE will make it so no one ever lists any apartment again!!!” argument, which never made any sense.
Follow the money, guys. It’s the easiest way to understand why someone is taking a specific stance. The report also shows that removing broker fees does not suddenly increase everyone’s rent which, again, everyone but REBNY and co. knew. I’m grateful they’re publishing their data to refute these BS claims.
Chi Osse and I on Bloomberg
I promised to share this when it came out, so here we are. Bloomberg spoke to me and CM Osse (and other people of course) about FARE, the fight over broker fees, and the bill’s anticipated effects for their podcast, Big Take.
NYC Subway Stops IN Your Apartment
My gorgeous, funny cousin, Phil Embury, has a web series called Scrappy out now on YouTube. In the most recent episode, he joins his friend on a rental apartment search and hilarity ensues. Scarily, it’s kinda almost accurate.
Great exposure!!!
Another Four Years
The good news is not the election. The good news is how prepared I feel for the next four years.
I had been so stressed about the possibility that resignation and certainty is almost better? Don’t get me wrong, I am not in any way excited, but it didn’t hit me like a train the way 2016 did. I’m mostly embarrassed I believed the majority of (young) white women would vote for Kamala.
Here’s what’s keeping me sane, if it helps any of you:
I have a clear vision for how I can affect positive change and find meaning. If you don’t, join community groups, get politically involved, volunteer, do anything that makes you feel connected to the people around you and like you’re fighting for a common goal. You can also donate to organizations that help those most vulnerable to T’s policies.
I keep thinking back to a conversation I had in 2023 with someone who had worked on the Hill during T’s first administration. The one positive was how quickly you could get things done when no one was worried about stepping on toes or respectability politics. I am brainstorming ways we can use this time to cut through red tape and eliminate redundancy so that housing is easier to build. I plan to write more about this in the future; policy is the direction my career is heading.
xo
Anna