New analysis argues New York’s affordable housing strategy has become overwhelmingly focused on rentals—and calls for restoring homeownership as a pillar of economic mobility.
NEW YORK, NY (8/4/2026) — New York City could generate nearly $1 billion in long-term household wealth every year for low- and moderate-income families by expanding affordable homeownership opportunities, according to a new report released today by Regional Plan Association (RPA).
The report, A Billion-Dollar Blueprint: Closing New York’s Homeownership Gap, argues that while New York has rightly invested billions of dollars in affordable rental housing, it has largely abandoned affordable homeownership as a public policy goal. Over the last 11 years, just 2 percent of the affordable housing developed through City programs was for homeownership, down from 20 percent from 2004-2013. Restoring that earlier benchmark could generate nearly $1 billion annually in long-term household wealth, with more than half of that wealth accruing in majority Black and Latino neighborhoods.
Report Highlights
New York City has the lowest homeownership rate of any U.S. city with more than 500,000 residents.
By a 4 -1 margin, renters in the region would prefer to own a home.
Affordable homeownership has fallen from 20% of City-supported affordable housing production to just 2% over the past 11 years.
The price of starter homes has increased 87% since 2009, as opposed to just 5.6% for the most expensive 25% of homes.
Restoring affordable homeownership to 20% of City-supported housing production could generate nearly $1 billion in household wealth every year.
More than half of that wealth would be created in majority Black and Latino neighborhoods.
“New York has spent decades treating affordable housing almost exclusively as a rental strategy,” said Tom Wright, President and CEO of Regional Plan Association. “That has helped countless families remain in the city, but it has also meant overlooking one of the most effective ways to help working families build wealth: homeownership. If we’re serious about expanding economic opportunity and narrowing the racial wealth gap, affordable homeownership has to become a much larger part of our housing strategy.”
“New Yorkers shouldn’t have to choose between renting forever and leaving the city in order to own a home,” said Moses Gates, Vice President of Housing and Neighborhood Planning. “A healthy housing system gives people choices. That means building more rental housing, preserving affordable homes, and creating realistic pathways to homeownership for the families who want to put down roots and invest in their communities.”
The report comes as homeownership has become increasingly out of reach. Just 33 percent of New Yorkers own their homes—the lowest homeownership rate of any U.S. city with more than 500,000 residents and roughly half the national average—even though renters across the region say they would prefer owning over renting by nearly four to one. Meanwhile, prices for the city’s most affordable ‘starter homes’ have increased 87 percent since 2009, putting ownership beyond the reach of many middle-income households.
The report finds that expanding affordable homeownership is about more than increasing ownership rates. Homeownership remains one of the strongest pathways to long-term financial stability and wealth creation, yet the gap in wealth between homeowners and renters has grown to $1.37 million nationally, driven largely by home equity. By creating more opportunities for first-time buyers, particularly in neighborhoods with historically low homeownership rates, New York can help more families build assets while addressing longstanding racial and economic inequities.
To help achieve that goal, RPA recommends:
modernizing tax incentives for homeownership,
removing barriers to condominium development,
expanding affordable homeownership programs,
reforming taxes that disproportionately burden first-time buyers,
and directing more ownership opportunities to neighborhoods where they have historically been scarce.
“The path to homeownership should not be reserved for a select few,” said Tonya Ores, Chief Executive Officer at Neighborhood Housing Services of New York City, Inc. (NHSNYC). “Every family deserves the opportunity to build equity, create generational wealth, and invest in the future of their community. Regional Plan Association’s report underscores the urgency of expanding affordable homeownership opportunities across the tri-state region. NHSNYC is proud to stand with partners committed to removing barriers, advancing equitable housing policies, and ensuring that homeownership remains an attainable cornerstone of economic opportunity for generations to come.”
“Homeownership is unattainable for too many New Yorkers and in some neighborhoods purchasing a home is not an option,” said Kim Darga, Vice President and Market Leader, Enterprise Community Partners. “This locks families out of generational wealth building opportunities and encourages too many people to seek opportunities elsewhere. We applaud Regional Plan Association for grappling with the very real challenges around encouraging affordable homeownership and congratulate them on the release of this report.”
“The Center for NYC Neighborhoods is proud to have supported the Billion-Dollar Blueprint, and we are excited to champion its recommendations,” said Christie Peale, CEO and Executive Director of CNYCN. “RPA’s report highlights that despite the challenges of a high-cost market, New Yorkers still see the benefits of homeownership, and demonstrates that with increased resources, targeted investments and new tools, we can grow new opportunities in New York. Expanding affordable homeownership is not only a housing strategy with strong support from New Yorkers, but it is also a downpayment on a future with stronger families, lasting community wealth, and a more equitable state and city.”
