From Fortune:

Gen Z is flocking back to NYC post-pandemic, leading to a historic housing shortage. The city now has a record-low vacancy rate of 1.4%, with millennials and Gen Z making up the majority of new movers. This influx has inflated rents to $4,700 for a 700-square-foot apartment.

Privately-owned developers in NYC need expensive incentives to build new housing. High prices and strict regulations pose hurdles for developers, making it less appealing to address the city’s housing crisis. Rent control is also urgently required to combat NYC’s housing shortage.

NYC’s housing crisis is also adding to the city’s homelessness issue. Mayor Adams has launched a plan to build 100,000 new homes over the next 15 years. Despite the housing shortage, NYC remains an attractive destination, especially for dreamers. However, the lack of affordable housing may drive away the talent the city attracts.



Read more: Gen Z drives NYC apartment vacancy rates to historic low of 1.4%