Bloomberg’s administration began rezoning the entire city, upzoning certain areas and downzoning others. The plan for upzoning was to increase density and development through building more affordable housing units, while downzoning would restrict density and development by reducing the number of housing units available for use. The government’s plan for the greater good of New York City ultimately caters to the wealthy, as rezoning depends heavily on the private sector.
Sarah Laskow’s, “The quiet, massive rezoning of New York” discusses an argument for upzoning: developing denser neighborhoods would use less land (building upward) and the real estate market could supply more affordable housing units for people with lower incomes, which in theory would be a success. However, it is not in the real estate market’s best interest to provide affordable housing. As the number of housing units go up, prices – profits for the private real estate sector – would go down. As a result, residential capacity increased only 1.7 percent in upzoned lots, the statistic determined in a report by the Furman Center, discussed in Kareem Fahim’s article, “Despite Much Rezoning, Scant Change in Residential Capacity.” Furthermore, the newer housing units are not strictly set aside for people with lower incomes – there is no guarantee that these units will benefit people of a lower socioeconomic class. If people with lower incomes can afford to live in these units, so can people with higher incomes, which could lead to the gentrification of the area and possible future downzoning as the neighborhood’s resident income grows.
Downzoning, on the other hand, limits competition for private developers (Laskow 2014), and typically occurs in white neighborhoods with higher incomes, leaving minorities with lower incomes few housing options (Fahim 2010). Downzoning keeps wealthier areas wealthy, and these neighborhoods have more power to push for downzoning in the first place. The real estate market in the neighborhood stays up as a result of downzoning, and lower income minorities would look elsewhere for more affordable housing.
While the initial idea may have been well-intended, the effects of the rezoning put into place haven’t changed much in regards to affordable housing or progression of gentrification. In the end, the rezoning government policies have lead to the benefit of the wealthier white population and private sector, leaving lower-income minorities displaced.
Additional Sources: