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BUDGET What the governor’s proposal includes for housing, health care and transit PAGE 2
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CRAINSNEWYORK.COM
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FEBRUARY 6, 2023
REAL ESTATE
Will more units actually reduce housing costs? Expanding the types of homes developed and the areas they’re built in might have a larger impact on affordability, experts say BY EDDIE SMALL
T BUCK ENNIS
BOTH THE mayor and the governor have pledged to increase the housing supply.
he basic premise behind the ambitious housing plans from Mayor Eric Adams and Gov. Kathy Hochul is simple: New York’s population growth has far outstripped its housing stock in recent years, driving up prices and making its real estate market insanely competitive for people looking to rent an apartment or buy a home. Increasing the housing supply, therefore, would restore some much-needed balance to this AMOUNT the environment, ideally making the process less stressful city’s population and costly. grew by in the Although the idea makes sense, experts say there is past decade, but little indication that solely increasing the area’s generonly 200,000 al housing supply will lead to a significant decrease in homes were added the sky-high rents and home prices that New York has become known for, similar to how adding lanes to a highway does not lead to the end of traffic jams. For that to happen, developers will need to expand the types of homes they
800K
See HOUSING on page 19
FINANCE
Facing crisis, crypto turns to old guard
LUTZKER of Davidoff Hutcher & Citron
Veterans of past financial crises cash in on collapse of digital currencies
E
lliot Lutzker is a walking encyclopedia of white-collar woe. During his 50 years as a securities lawyer, his clients have been accused of some of the most colorful infractions imaginable. That makes Lutzker a person of particular interest to leaders of stricken cryptocurrency outfits seeking an experienced hand to help guide them through hard times. Bitcoin evangelists half his age are regularly phoning him
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or trekking to his classic Midtown law office, which features soundproofed conference rooms, tasteful photos of Manhattan landmarks and unobstructed downtown views. “Yeah, I’ve been through a lot of different crises,” Lutzker said, a little irritated. “You got any more-pleasant questions?” When Jamie Dimon’s daughter once asked what a financial crisis is, the chief executive of JPMorgan Chase explained, “This type of thing happens every five to
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seven years.” His math checks out. The collapse of crypto joins a 30-year-long parade, from the failure of savings and loans, the collapse of Long-Term Capital Management, the popping of the dot-com bubble to the implosion of the housing market—which brought the global banking system to its knees and revealed the epic Bernie Madoff Ponzi scheme. The sheer frequency of financial
BUCK ENNIS
BY AARON ELSTEIN
See CRYPTO on page 22
GOTHAM GIGS
THE LIST
AN ACTIVIST SEEKS TO PROTECT OLD BUILDINGS
The top retail leases in Manhattan
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