For the last 14 years, New York State has been losing its primary population: GenZs, GenXs, Millennials, and even baby boomers (Gov. Cuomo’s failed $207 million advertising plan/Pressconnects.com).
You’d have to have your head in the sand or never read or watch the news not to know why. It’s obvious that the price of homes, real estate taxes and the cost of living are the three main reasons, right?
Well, you guessed it!
It seems extremely doubtful that anyone, including our local, state, and federal governments, can do anything about the price of homes, but maybe they can. Moreover, there is a way to cut our real estate taxes by methodically creating a plan of action to ascertain and determine where monies can be saved in running our local, state, and federal governments.
I do not suggest or believe a swift sword slicing to every department “willy-nilly” that runs our local, state, and federal governments without a plan in determining who needs to be on the “chopping block” in a fair and equitable fashion.
What is happening today is not the most prudent, logical, and pragmatic plan of action. However, if we fail to plan, we will plan to fail, similarly to what is currently occurring today.
When you try to save, you must plan and figure out how to do it with the least amount of damage and pushback to the governing aspect of everyday life as well as to the people who are employed.
Laying people off as a cost-saving method is one thing, but what is happening today is suddenly just firing or offering them buyouts without cause or proof of failure to perform without actual and factual reasons.
This will have some consequences for homeowners and those who plan to become homeowners, as their jobs will be eliminated.
How will this help our economy and minimize future inflation? In my professional opinion, it will not. There are enough economists who have said that inflation is here to stay and will increase once again, as it did during the COVID-19 pandemic.
I do apologize for digressing into the political arena, but this explanation will make many realize and understand how we can keep more of our younger population who want to stay in New York, and it has become next to impossible under the current home pricing crisis.
To me, one answer is to construct much smaller homes for singles, couples, and families with children. In my town, studios currently cost between $150,000 and $339,000, and the approximate square footage ranges from 250 to 400 sq. ft. This might work for singles and couples but not for families.
The time has arrived for greater emphasis on factory, pre-built modular homes. This must now be considered one of the solutions and an avenue to pursue to keep our population from exiting New York State. There are companies, one in particular, that I am working with where prices can range from $110,000-$450,000 depending on the size, finishes, and extras.
The cost savings can be monumental; and these are factory built modular homes are assembled on sight in a very expeditious and simple fashion.
However, this will provide the benefits of true ownership as opposed to being under the control of a landlord, who receives all the benefits and gains of income, appreciation, tax write-offs, building their future wealth and the tenant zero.
It’s all about enabling tenants to become homeowners, experience the “American Dream” and building their future wealth. This, in turn, will continue to aid and boost our local and state economies.
The issue is finding suitable land that is economically priced to build upon in development-styled locations where nimbyism (not in my backyard) is less of an issue and can be tolerated by local homeowners, understanding the ramifications of losing our populations to other less costly states.
Suffolk County, many areas of the five boroughs of NYC, and Upstate have sufficient land to provide reasonable housing at cost-effective prices.
Local, state, and federal governments need to take a stand as they have the power to create first-time assistance programs to provide grant money that you wouldn’t have to pay back if you reside in the home for at least 10 years.
We are losing our middle class in New York and other high-cost states. We need to be innovators, and the government needs to have an entrepreneurial spirit to keep our local and state economies from falling behind and losing our workers.
I would like to know who among you would consider staying if the price of purchasing a studio-sized, small to a midsized single-family or attached home from 350-1,200 sq. ft was affordable. Email me at the address below If we have a sufficient response, I will report on it in a future column.
Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave, Suite 180 in Great Neck. For a free 15-minute consultation, value analysis of your home, or to answer any of your questions or concerns, he can be reached by cell: (516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com and you can search properties at your leisure and convenience at: https://WWW.Li-RealEstate.Com
