Report: Pathways to Homeownership in NYC Today

Downloads: full report and interview guide.

This research report offers data-driven findings and policy recommendations to expand equitable access to homeownership in NYC.

The Center for NYC Neighborhoods has released a new report, Pathways to Homeownership in NYC Today, examining how New Yorkers are navigating the city’s deepening housing affordability crisis.

The study draws on in-depth interviews with 21 New Yorkers—including renters, participants in the City’s “affordable” homeownership programs, and those who followed more traditional paths to buying a home. Through these conversations, the report highlights the barriers and tradeoffs that define today’s housing landscape—and identifies best practices and policy solutions to make homeownership more accessible and equitable across the five boroughs.

Topline Findings from the Report

The findings overall demonstrate that there are no major differences between the concerns of renters versus homeowners. In fact, both respondent groups expressed similar feelings and desires regarding housing in New York City today. Further, the results overwhelmingly indicate that New York City is no longer affordable for its “average” residents. As the housing market (for both rented and owned homes) has grown more prohibitively expensive, our respondents have adapted to this new reality by developing competitive strategies and accepting a certain amount of trade offs when securing housing. Under the existing conditions, it appears that only the wealthiest New Yorkers can become homeowners, with some exceptions including luck and family support. If conditions remain as they are, people will continue to leave New York City for more affordable places to live. New York City needs to increase its supply of affordable homes, coupled with lower prices that reflect New York City’s population, in order to both retain and support residents of all economic backgrounds.

• 76% of all respondents believe New York City has rapidly declined in affordability over the past few years.

• 76% said high housing costs force them to make tradeoffs in their living situations and spending habits.

• 54% of respondents (both renters and homeowners) reported receiving some form of family support to secure their housing.

• 43% of renters said they do not see homeownership in New York City as a possibility for themselves.

• 76% described “luck,” “privilege,” or “extraordinary circumstances” as the reason they obtained housing — calling it “like finding a needle in a haystack.”

• 76% cited “landlord greed” as a primary cause of the current affordability crisis.

• 76% said climate change factors into their housing decisions.

Summary of Policy Recommendations

The Center proposes the following actions that improve support to prospective and existing homeowners in New York City. These recommendations are grounded in the Center’s research and interviews, and respond to the affordability challenges New Yorkers are experiencing.

1. Streamline financing and improve transparency in affordable housing development

• State and local governments should introduce greater transparency into how affordable housing is financed and developed.
• This measure will empower the public to make informed choices and help more M/WBE developers participate in housing production.

2. Increase subsidies for affordable housing and align New York City’s Area Median Income (AMI) to reality

• Provide larger per-unit subsidies to incentivize developers to build truly affordable housing at lower price points.
• Adjust AMI levels to reflect actual NYC incomes.
• Prioritize proposals from nonprofit developers to ensure affordability is preserved.

3. Expand legal protections to support homeowners and reduce speculation

Pass pending legislation that would:

• Protect new homeowners,
• Increase the stock of local affordable housing, and
• Address speculative market pressures that drive up prices and displacement.

4. Permanently increase support for future homebuyers

• Provide stable, permanent funding for first-time homebuyer counseling and down payment assistance.
• Ensure that pre- and post-purchase counseling programs are designed with the needs of everyday New Yorkers in mind.

5. The federal government must do more to be a part of the housing solution

• The recommendations will require significant federal investment in housing to address the affordability crisis.
• Doing so will lead to more funding for state and local programs that can expand housing supports, preserve and improve existing affordable stock, and increase supply at the local level.

View the full report.

Grace Fulop is the report’s author and Ariana Shirvani is the editor.