Disparate Views on Housing Solutions in LA and NYC

In Los Angeles, mayoral hopeful Spencer Pratt and New York City’s socialist mayor Zoran Mamdani aren’t exactly on the same wavelength.

While Pratt plans to require homeless drug users to seek treatment, Mamdani is pushing for a budget boost for “homeless services,” aiming for $4.2 billion.

Pratt suggests a significant increase in the Los Angeles Police Department, whereas Mamdani has scrapped plans to hire thousands of additional NYPD officers.

Interestingly, both Republican Angelenos and members of the DSA in Gracie Mansion agree on one thing: the slow process of issuing permits to developers for new housing. They’re both eager to speed up what they view as red tape.

Pratt promises “faster approvals, lower costs, and tangible results,” and wants to eliminate permit fees for single-family home reconstruction entirely. This push stems from issues with slow permits that are hindering recovery in areas affected by fires.

On the other hand, Mamdani’s plan aims to make permit processes “faster and fairer.”

Interestingly, a smaller city in Westchester County seems to have already cracked the code on stimulating housing construction while effectively keeping rents low.

Since 2015, New Rochelle, home to about 85,000 people, has opened the door for 5,130 new apartment units while finding ways to approve an additional 2,746. Even more, around 3,100 more units could be on the way.

This combination results in a substantial 37% increase in housing inventory, benefiting the entire region.

Mayor Yadira Ramos-Herbert believes rent control isn’t necessary, as the surge in new construction has kept rent hikes to a modest 1.6% since 2020.

Over the same period, the average rent in New Rochelle saw a rise of under 2%, which is notably better than Mamdani’s promise of a rent freeze.

Development Director Adam Salgado refers to the “New Rochelle Model” as a “supply-side solution” to the housing problem.

Implementing significant changes can be both straightforward and ambitious for bureaucracies. The city’s three main agencies—Buildings, Development, and Planning—are required to give a thumbs-up or thumbs-down to developers within 90 days.

New Rochelle revamped its zoning and conducted a comprehensive environmental review, streamlining much of the downtown area. This modification helps developers bypass the lengthy approval process that once took over two years.

Salgado pointed out that he hasn’t seen a project review take longer than 90 days; many only take about 60 days.

Though it may seem like a straightforward strategy, New Rochelle’s method has proven innovative enough to win the University of Utah’s Ivory Award for housing affordability recently.

Scott Reckler, CEO of developer RXR, mentioned that the city sets a clear strategy that encourages private developers to invest.

His firm has contributed over $1 billion in New Rochelle, with a total private investment plan reaching $2.5 billion.

Could New Rochelle’s approach serve as a model for Los Angeles and New York? They both still have considerable challenges ahead.

A new report in New York City highlights the lengthy permitting process, which can involve approval from up to 15 city agencies before any construction can start. It’s no surprise that the process averages around 16 months, and when you factor in construction time itself, it often takes over four years from an initial application to the completion of all inspections.

Research from the Journal of Urban Economics noted that in Los Angeles, building a new apartment typically takes around four years, with a year and a half spent just on securing permits.

Shortening this process to a year—still significantly longer than New Rochelle’s 90 days—could potentially increase available housing in LA by 23.7%, according to their findings.

The research also suggests that these conclusions apply to New York City as well. “Longer bureaucratic timelines” create expensive delays that deter new investments.

If Mamdani is considering lessons from New Rochelle, he should remember that the expedited approval process should apply to all proposed new housing, not only affordable units.

In New Rochelle, it’s understood that increasing supply fosters competition, which in turn leads to lower overall home prices.

This is something Mamdani should keep in mind: His recent Streamlining Process for Equitable Development (SPEED) plan seems to focus mainly on easing the permit process for “affordable housing,” often slowed by bureaucratic inefficiencies.

In essence, this implies that market-rate housing can still get mired in permit delays.

Such a narrow focus may lead New York City into a prolonged housing dilemma.

Mayor Ramos-Herbert puts it well: “I understand when people talk about rent control and rent freezes. However, the success of our model has allowed us to investigate and invest in other affordability options.”