Everyone is talking about Bill de Blasio’s “Tale of Two Cities.” One is the rich New York, the other is the poor, working class New York. That division can be seen on gender lines, racial lines, and political lines. But there is one uniting factor in all of BDB’s divided New York: everyone voted for him. Winning by a landslide, Mr. De Blasio will become New York City’s mayor in January and, with that, the platform of income inequality (Occupy Wall St, sound familiar?)
Atlantic Cities published a map illustrating the two cities by percentage change in property values between 2008 and 2012. The map essentially shows which neighborhoods were hardest hit by the housing crisis:
With a few exceptions, it’s Manhattan and adjacent sections of Brooklyn, Queens, and the Bronx that have seen assessments go up in the data from the New York Department of Finance that Walker mapped, which encompasses 958,000 properties. In many of the working-class neighborhoods of the outer boroughs, the value of real estate has actually fallen.
This map speaks to two main issues in housing: first, that low-income tenants residing in wealthier or gentrifying areas are being forced out of their homes due to speculation and predatory equity. It also speaks to the ways that the foreclosure crisis has hit homeowners, specifically black homeowners, in a particularly hard way. It’s clear who suffers and who profits in these scenarios. Working class and middle class New Yorkers loose homes, equity, and stability, while wealthy New Yorkers (bankers, landlords, and developers living in high income neighborhoods) profit.
In our work, we see mostly the tenant side of the story. We see low income tenants living in buildings and neighborhoods swept up in predatory equity. Tenants are harassed through fees added on to their rents, through lack of repairs, though illegal rent increases. We see this is the rapidly gentrifying neighborhoods of Crown Heights and Ridgewood, but also throughout the Northwest and Central Bronx.
While speculators may be throwing huge amounts of money into gentrifying neighbors, out of town private equity companies have not done their research on the “Tale of Two Cities.” It seems like speculators assume that they can skirt rent laws, force tenants out, and bring in higher paying tenants. Too bad for them, many tenants, especially the ones we work with, are organized and know their rights. Bill de Blasio has promised to fight for a a rent freeze, something we’d certainly support and that would make the Predatory Equity model even more unsustainable. While Michael Bloomberg’s administration – by the own admission – doesn’t know what to do about gentrification a rent freeze would go a long way towards keeping neighborhoods affordable and discouraging speculation.
Speaking of speculation, journalists near and far are speculating whether or not a de Blasio mayoralty will live up to it’s progressive campaign platform. We hope so. Here’s another thing we know: if he starts to waver on his housing goals, there are organized tenants all over New York City ready to hold him to his promises. We’re with them.