New York’s Affordable Housing Crisis: Six Million Dreams, 10,000 Units

The City’s Lottery System Leaves Out the Very Residents It Claims to Serve

The odds of securing affordable housing in New York City through the city’s highly publicized housing lottery system have become almost impossibly slim. In 2024 alone, over six million applications poured into the NYC Housing Connect portal for just 10,000 units—a sobering reflection of the worsening housing crisis. With vacancy rates dipping to just 1.4% citywide and even lower for reasonably priced units, thousands of New Yorkers remain in a state of limbo, unable to secure a home they can afford.

Who Can Afford “Affordable” Housing?

Despite its name, the “affordable housing” program frequently prices out the very people it was meant to help. Many units on offer through the Housing Connect system are tied to Area Median Income (AMI) levels far beyond the actual earnings of most New Yorkers. A prime example is the luxury high-rise at 2-21 Malt Drive in Long Island City, where studios rent for $2,490 and two-bedrooms for $3,590—available only to individuals and families making well above the city’s true median income.

A Disconnect Between Data and Reality

The AMI, determined by the U.S. Department of Housing and Urban Development (HUD), includes suburban counties like Rockland and Westchester, skewing the income threshold upwards. While HUD sets 100% AMI for a family of four at $162,000, the actual median income for such a family within the five boroughs is less than half that: $79,713. The result? The majority of available units go to those earning more than most New Yorkers, particularly those in boroughs like the Bronx, where the median household income is just under $50,000.

Real People, Real Struggles

At a recent City Council hearing, residents shared painful testimonies. Bronx couple Valentina and Victor Mejia have been applying since 2012, living in squalor as they wait. Health worker Milagros Salazar revealed she applied to 63 lotteries before finally securing a unit, after working exhausting hours to meet the income requirements. Others like Sonia Simpson and Alex Martinez detailed the challenges low-income and elderly applicants face navigating a system not built with them in mind.

Council Member’s Push for Reform

Bronx Council Member Pierina Ana Sanchez, chair of the Housing and Buildings Committee, has become a vocal critic of the system. She introduced three bills to overhaul the Housing Connect experience: mandating clearer communication with applicants (Intro 1265), creating an in-person assistance program for those needing help with applications (Intro 1266), and tackling the lengthy vacancy delays for re-rental units (Intro 1264). Her aim: restore equity to a system she says no longer serves those most in need.

A System Struggling to Function

Housing Connect, once hailed as a cutting-edge portal for equitable housing access, is now under scrutiny for technical glitches, inefficient communication, and misleading filtering that leaves low-income residents chasing apartments they don’t qualify for. Acting HPD Commissioner Ahmed Tigani acknowledged the flaws at the same hearing, promising to streamline documentation and improve usability. But for many, promises offer little comfort when the wait for a unit can stretch well over a year.

Underlying Challenges Beyond the Portal

According to Rachel Fee of the New York Housing Conference, the cost of building and maintaining housing in New York makes it nearly impossible to offer units affordable to very low-income families. She and others argue that meaningful solutions must involve deeper subsidies and expanded federal programs like Section 8. Without them, Fee says, “affordable housing” will remain a mirage for tens of thousands of residents.

A Broken Promise

Council Member Sanchez summed up the frustration: “When leaders claim they’re building deeply affordable housing, but my entire community can’t qualify, it feels like a false victory.” With a median income of just $25,000 in her district, she says that no amount of new development will bridge the gap between policy and reality unless vouchers and subsidies are expanded.

Housing Crisis at a Crossroads

As New York City faces a mounting affordability crisis, millions of residents are caught between soaring rents and a housing lottery system that seems increasingly rigged against them. The city’s next steps—whether guided by reform, investment, or innovation—will determine whether affordable housing remains an elusive dream or a deliverable promise.