In Sunday’s New York Times, the writer and filmmaker Lee Grant wrote a letter to the editor about her neighborhood, the upper west side. The gist: her favorite local restaurants and shops, some of which have been in the neighborhood for years, have been forced to close up shop due to insane real estate prices. Chains have replaced them all.
In the news, we hear stories of the depressed real estate economy. In the Boston Globe, it was reported that Federal Reserve chairman Ben S. Bernanke was hesitant to declare the economy on the mend precisely because of commercial real estate lag. But in New York City, this is hardly a reality. It may be that housing does not fly off the shelf quite as quickly as it used to, and it may be that a West Village apartment goes for half a million less than it had two years ago. But it still has a multi-million dollar price tag.
Everyone has an anecdotal story about New York prices. My smart and lovely neighbors for example are moving out of their TriBeCa apartment because their rent is too high and the job market too unfriendly. What’s infuriating about this is that my building had been rent control.
Under the Mitchell-Lama program, my landlord received major tax breaks for keeping rents affordable to middle-income people. And it worked beautifully. But no one was told my landlord would have the option to buy out of the program 25 years down the road. Well, he did just that, and as his decision to do so coincided with the city’s real estate boom, rent in my building rose from $1,000 a month to $5,000 a month. Many of my neighbors, who had worked so hard to make TriBeCa livable, left, and new 20-somethings moved in. The neighborhood became “hot” and our favorite restaurants like River Run on Franklin – best steak and potatoes in the world – closed because they, too, couldn’t pay the rent.
It’s not enough to sit by and let the market take its course. Too many people are getting screwed. We need more rent control. Free market capitalists and conservatives may be horrified at the thought but then ask yourself which laissez-fairest, which republican representative, ever had to struggle to pay the rent or had been forced to move because of a landlord’s decision to embrace market prices. Very few, I’d bet.
To Lee Grant: I hear your plea. It makes me sad, too.