Long Island’s Housing Crisis: A Complex Web of Challenges and Opportunities
Long Island, a region renowned for its suburban charm and proximity to New York City, is grappling with a severe housing crisis. The lack of affordable and available housing has become a major impediment to economic growth, driving away young professionals and families while exacerbating existing inequalities. A recent panel discussion hosted by the Real Estate Institute (REI) shed light on the multifaceted nature of this crisis, highlighting the interplay of onerous legislation, lengthy approval processes, and a general lack of public understanding as key obstacles hindering the development of much-needed housing.
The REI’s Spring Luncheon, titled "Long Island Housing Development: Challenges and Opportunities," brought together over 200 real estate professionals, developers, elected officials, and economic development experts to dissect the issue. The panel, moderated by Kevin Law, executive vice president and partner at Tritec Real Estate and chairman of Empire State Development (ESD), featured a diverse range of perspectives, reflecting the complexity of the housing challenge. Developer Anthony Bartone, Mayor Ralph Ekstrand of Farmingdale, Brookhaven Supervisor Dan Panico, ESD Regional Director Cara Longworth, and David Pennetta, executive managing director of Cushman & Wakefield Long Island, offered insights into the regulatory hurdles, community resistance, and economic realities shaping the housing landscape.
A central theme that emerged from the discussion was the detrimental impact of state legislation on housing development. Bartone, who also serves as president of the Long Island Builders Institute, pointed to several laws as particularly burdensome, including New York’s scaffold law, which significantly inflates insurance costs for developers, limitations on security deposits for apartments, prevailing wage mandates, and the proposed Good Cause Eviction law, which seeks to provide greater tenant protections but is seen by some as disincentivizing development. These regulations, according to Bartone, create a "untenable" environment for builders and contribute to the scarcity of new housing units.
Beyond legislative hurdles, a critical challenge lies in educating both elected officials and the public about the complexities of housing development. Pennetta emphasized the need for greater understanding among policymakers regarding the financial realities of development projects. He suggested the formation of a dedicated group to engage with local and state officials, explaining the cost implications of various regulations and promoting a more nuanced perspective on housing development. This educational effort, he argued, is crucial to fostering a more constructive dialogue and facilitating the creation of much-needed housing.
While the panel highlighted the numerous challenges facing Long Island’s housing market, it also showcased successful examples of pro-housing initiatives. Both Mayor Ekstrand and Supervisor Panico, representing Farmingdale and Brookhaven respectively, have spearheaded efforts to streamline approval processes and encourage development in their municipalities. Farmingdale has witnessed a significant increase in apartment construction under Ekstrand’s leadership, while Brookhaven has implemented innovative strategies to expedite development, including eliminating its planning board and allowing simultaneous hearings for zone changes and site-plan approvals. These local successes demonstrate the potential for progress when municipalities embrace proactive approaches to housing development.
The economic consequences of Long Island’s housing shortage were underscored by ESD Regional Director Cara Longworth. She pointed to the alarming trend of population decline among prime working-age individuals, a direct consequence of the lack of affordable housing options. This demographic shift has a ripple effect on the regional economy, making it difficult for companies to attract and retain talent. Longworth, however, expressed optimism about the state government’s commitment to addressing the housing crisis, citing Governor Hochul’s initiatives to incentivize pro-housing policies at the municipal level. These initiatives include financial support for municipalities that adopt pro-housing measures and the certification of pro-housing communities.
Despite these positive developments, community resistance to increased housing density remains a significant obstacle. Supervisor Panico acknowledged the prevalent perception of developers as "greedy" and stressed the importance of community engagement and education. He advocated for greater transparency from developers, urging them to explain the financial constraints they face and the reasons why higher-density development is often necessary to achieve affordability. Pennetta echoed this sentiment, emphasizing the need to shift the narrative surrounding housing development and highlight the positive economic and social impacts of increased housing supply.
The Long Island housing crisis presents a complex challenge with no easy solutions. Addressing this crisis requires a multi-pronged approach that includes reforming burdensome regulations, streamlining approval processes, educating the public and policymakers, and fostering greater collaboration between developers, municipalities, and community stakeholders. While the challenges are substantial, the panel discussion offered glimmers of hope, demonstrating the potential for progress when local governments embrace pro-housing policies and work collaboratively with the development community. The future of Long Island’s economy and its ability to attract and retain a vibrant workforce hinges on finding effective solutions to this pressing housing crisis.