Earlier this week, The New York Times addressed a question that has circled my brain while watching (and helping) friends stake reserve their own bite of the Apple during the postgrad urban migration: how can middle class people afford Manhattan? Amy O'Leary's piece, What Is Middle Class in Manhattan? explores behind the curtains of those who cling to apartments in pricy neighborhoods like TriBeCa and the Upper West Side and pinpoints the difficulties of New Yorkers who have moderate incomes- think teachers and police officers- trying stay afloat on an island where an annual income of $166,000 provides you the same purchasing power that an Atlantan or Clevelander enjoys with an income of $70,000.
The article moves beyond the realm of housing and delves into the existential crisis confronting many New Yorkers who are unsure whether they can confidently provide an all-American affirmative responde to the question "Are you middle class?", but not before confronting the reality that middle-class Manhattanites are being irreversibly pushed to the outer boroughs and suburbs. In searching for possible ways to counteract this trend, O'Leary notes that there are few options for those feeling the squeeze in an increasingly tight market: she notes the relatively high income ceiling to qualify for New York City public housing and institutional benefits such as a Columbia faculty housing stipend present options for some in an increasingly tight market. However, her portrayal of rare rent-controlled apartments as golden opportunities for those who may not meet Section 8 qualifications to stay in Manhattan, turned my attention toward the potential of rent regulations, first upheld by the Supreme Court in Block v. Hirsh, 256 U.S. 135 (1921), to keep middle class residents in other urban areas with skyrocketing sticker prices. After all, Zip codes beyond the George Washington Bridge have seen a steady appreciation in property values corresponding with a diminished presence of middle-income residents in recent decades. Neighborhoods like San Francisco's Mission, Atlanta's Virginia-Highland, Nashville's Hillsboro Village, and much of Cambridge, MA have transitioned from economically diverse to increasingly wealthier addresses out of reach to many in the middle class, particularly prospective homebuyers. These areas exist across all schemes of rent regulation, as states broadly falling into one of three categories- the states allowing municipalities to enact rent control (California, D.C., Maryland, New Jersey, and New York); states preempting rent control through a variety of Rent Control Preemption Acts that range from a ban on rent control except when authorized by the governor in times of disaster (e.g. Texas) to a prohibition of local governments passing rent control laws without state authority (e.g. Illinois); and states that have not enacted rent control.
Even a cursory glance at the rent-controlled lanscape reveals that rent regulation is not a guarantee of affordable housing options to retain a robust middle class population- otherwise parts of New York (Manhattan and elsewhere), San Francisco, and D.C. would not be so entrenched in their various gentrification wars. Additionally, landlords and investors continue to despise rent control, even in cities like New York. In a recent and notable case, an Upper East Side property owner attempted to strike down a rent-stabilization regulation as an unconstitutional taking which, under the Fifth Amendment, would require just compensation from the City (SCOTUS denied cert in 2012). But could more widespread rent control with fewer restrictions in places where it is currently permitted, legislative relaxation of rent control preemptions that exist in the majority of states, or the introduction of rent control in jurisdictions where it is currently not practiced solve some of our cities' middle class affordability problems? Would they cause more problems? Have mixed-income and mixed-use projects become the preferred method for city planners and real estate lawyers to achieve socioeconomic integration in the urban lanscape?
These questions, stoked by the Times's frank discussion of the middle class disappearance from Manhattan, direct my next post to my own backyard to Cambridge, MA which continues to be a hotbed of discussion surrounding the merits of rent control even the city curbed regulations more than a decade ago.
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