For our memo assignment, we were put into groups of three and had to choose from topic supervisor, research director, and submission manager. I was the topic supervisor here. Our team communicated using discord, even though one of us was having trouble with it at first. I didn’t do too good a job as topic supervisor, as I should have communicated more clearly and more frequently, to keep the team on track and to make sure we hit our deadlines better.

NYC Housing Memo

To:	L. Carroll, Commissioner of the NYC Department of Housing Preservation and Development
From:	Ousmane Diallo, Muaj Mirza, Christian Zogopoulos
Subject:	Housing Market – Reform to Accommodate Job Growth
Date:	October 20, 2020

The purpose of this memo is to bring awareness to and voice our concerns regarding the disparity created by the current housing market. The amount of affordable housing has stagnated, meanwhile job opportunities are continuing to grow.

Summary

Our research has led us to believe that the housing market has gotten too competitive in its functions. While demand continues to rise this has been taken as an indication to increase rent rates, but this competitive nature clashes with the ongoing rise in job opportunities. With more jobs being available around the city, more people need housing, but due to the continued rise of prices few are able to obtain it. We recommend rent reforms to better protect current and future tenants.

Discussion

The housing market relies on demand. A high demand tends to increase rent rates. This correlation explains the reverse relationship between housing and job growth. In most towns where people can secure jobs, rent arrear remains at an all-time high. A job implies a reliable salary, but this does not translate into affordable housing. It only means that people will drive the demand due to a ready market. A higher demand ensures that landlords control the pricing (Mulliner, Smallbone, & Maliene, 2013). 

Consequently, most full-time employment people may not easily find proper housing in towns where employment is high. Furthermore, a situation where housing is expensive due to increased demand, policymakers have always ensured that they are focused on creating subsidized housing alternatives. Even though housing market growth varies from one region to another, the housing sector may negatively impact the economy as a high housing increases living expenses which might fail to attract tenants.

​Apart from high employment rates increasing rent rates, unaffordable housing stems from two factors. The first factor is that housing consumes a larger portion than other budget items in most communities. For instance, one household may spend a quarter of their total revenue on housing costs while another living in abject poverty may set aside a half of their salary (Mulliner, Malys, & Maliene, 2016). The second factor is the popularization of metropolitan regions, increasing housing as people move into urban areas. Most of the time, housing affordability is controlled through policymaking. However, economists claim that housing affordability is relative and insists on delivering housing quality and income hence giving people the ability to borrow loans or even own housing facilities.

Recommendation

To improve the housing market, we suggest the state pass rent reforms to better protect tenants and close loopholes used by landlords to increase rent. Again, as housing policy analyst at The Community Service Society of New York says, increasing housing production might not be enough to make housing affordable for people who earn less, and we need to intentionally develop affordable housing with subsidies and rent restrictions. Programs could also be funded to help low-income New Yorkers get into fields with better paying salaries to afford better housing.

References

Mena, Kelly and Merlino, Victoria, Brooklyn Daily Eagle, Nov 8 2019, https://brooklyneagle.com/articles/2019/11/08/nycs-housing-supply-cant-keep-up-with-its-job-growth-report/

Mulliner, E., Malys, N., & Maliene, V. (2016). Comparative analysis of MCDM methods for the ​assessment of sustainable housing affordability. Omega, 59, 146-156. 

Mulliner, E., Smallbone, K., & Maliene, V. (2013). An assessment of sustainable housing ​affordability using a multiple criteria decision-making method. Omega, 41(2), 270-279. 

Team Contribution Notes

Ousmane Diallo: Research Director

• Found detailed scholarly sources and used them to develop the discussion section.

Muaj Mirza: Topic Supervisor

• Kept the team on topic, read through and approved of sources and developed the recommendation section.

Christian Zogopoulos: Submission Manager

• Formatted the memo based on the sample in the textbook, compiled everyone’s research and writing to proofread and format for submission. Developed the purpose and summary sections.