Borinquen Plaza, East Williamsburg

Have to admire the New York Sun‘s ability to spin an editorial into a news story. On May 15, they made decent arguments (I disagree with a few items not worth getting into) for a wholesale give-away of New York’s public housing units to the people who live in them. Then this morning, after a week of poking around town searching for quotes from economists and social workers, the Sun published an article demonstrating support for last week’s editorial’s demands and assertions.

It’s fun to see this because I have been saying this for a while. The projects, built in the wake of the city’s program of “slum clearance” from the 30s to the 50s, and then with some built after parts of the city, including Bushwick, burned down in the 60s and 70s, have ironically remained the only slums left in this entire city of 8 million. Slum-like properties that are not city-owned are always directly adjacent to those that are. I advocate just handing the current residents a deed to their unit, and having the city withdraw from providing housing altogether. The article goes into the pros and cons, so I won’t restate them here. I do have one addition to the “pro” camp that nobody seems to be addressing: future affordable housing stock once the current inventory is converted to market-rate property.

What will happen to the poorest of the workers in the city — those who do the most menial jobs which require no skills? How will they afford housing in the city if they’re making typical unskilled wages? As with any product, when demand for labor rises but supply of labor does not, labor prices rise. In New York, everyone can agree there is a high demand for maids, janitors, drivers, and other no- or low-skill jobs. Hourly wages here are already slightly higher than most areas of the country — much higher percentagewise than the federal minimum wage.

What would happen to these workers if their housing converted to market-rate? Would they all immediately leave the city workerless: floors unmopped, beds unmade, shelves unstocked? Of course not, the idea is ridiculous — their labor would simply also revert to market-rate, whatever that may be in a city where a normal apartment costs $2000. If you think the rich will go without their domestic help, you are living in a fantasy world. And that brings me to my final point — public housing is in part an indirect subsidy for the richest among us. Sure, we all rely on people working unskilled and hourly jobs to keep the city running at its most basic levels. But the wealthy simply use more labor than the middle class. Mandating cheaper-than-market housing makes it easier for the rich to continue to pay a pittance for labor, instead of what it truly costs to maintain a decent labor force in New York City.

We’ll all still ultimately pay in the wake of significantly higher wages, this is true, but we will pay only the exact amount we rely on the labor of the unskilled. There’s no doubt this is much more efficient than involving massive, expensive bureaucracies to do what the market does on its own: keep workforce housing in the city, like it does in every other city without public housing.

Incidentally, I’m well aware there are quite a few physically and mentally sound people in subsidized housing who don’t work at all. That should be ended even if the city stays in the housing business. And yeah, I know they will make out like the bandits they are if they are handed a piece of property that may be worth millions. Did they earn it? No. But then again, living in them for any length of time might be payment enough. Get rid of the projects. Everyone will be better off.

UPDATE: Haha, the Sun considers this post evidence of building momentum.

More support for the Sun’s plan to give public housing tenants their apartments comes from, of all places, Bushwick, Brooklyn…