Affordable Housing
Brownstones in Prospect Heights.
Photo by Hillary Johnson
Early in 2008, Atlantic Yards developer Forest City Ratner released their plan that intended to address affordable housing for low, moderate and middle income households, Figure 5. Based on the 2010 Census Bureau household income statistics for Kings County, Forest City Ratner’s development plan fails to provide adequate housing options for many of Brooklyn's residents. Figure 6 illustrates the income demographics of Brooklyn. Brooklyn Area Median Income (AMI) is $35,000 a year which accounts for a meager 900 units or 14% of the total 6,430 proposed units that will be constructed in phase 1 and 2 of Atlantic Yards (DDDB, Mar. 2008). In all, 83% of the 6,430 housing units will be unaffordable to families who make less than $56,000 per year (DDDB, Mar. 2008). The uneven developments around the Barclays Center will surly facilitate a luxury housing enclave.
This development project is ignoring the fundamental cause in the lack of affordable housing and further polarizing property values and class in Prospect Heights as well as the surrounding neighborhoods. Over 40% of “affordable” housing units are set aside for individuals who make between $71,000 and $113,000 per year; hardly an income range that can be considered low or middle class. In all, 4,180 luxury units are projected to be built around the Atlantic Yards development project (DDDB, Mar. 2008). To put it simply, if your income is less than $21,270 a year, there is no unit for you to call home in Atlantic Yards. This accounts for over 22% of the population of Brooklyn New York. Meanwhile, Forest City Enterprises are projected to secure a profit of over $1 billion dollars on the development. The absence of low and middle class residential housing will directly facilitate instant gentrification in the Atlantic Yards condominiums.
This development project is ignoring the fundamental cause in the lack of affordable housing and further polarizing property values and class in Prospect Heights as well as the surrounding neighborhoods. Over 40% of “affordable” housing units are set aside for individuals who make between $71,000 and $113,000 per year; hardly an income range that can be considered low or middle class. In all, 4,180 luxury units are projected to be built around the Atlantic Yards development project (DDDB, Mar. 2008). To put it simply, if your income is less than $21,270 a year, there is no unit for you to call home in Atlantic Yards. This accounts for over 22% of the population of Brooklyn New York. Meanwhile, Forest City Enterprises are projected to secure a profit of over $1 billion dollars on the development. The absence of low and middle class residential housing will directly facilitate instant gentrification in the Atlantic Yards condominiums.
Atlantic Yards Property ValuesEver since Bruce Ratner purchased the Nets in 2003 and announced that Atlantic Yards would be the location of the new stadium, the values of the properties around the area have fluctuated substantially. Numerous events have impacted the variation of property values in the area from the rise and fall of the real estate market, the initial start of construction in the area, and the anticipation that is coupled with the stadiums slated grand opening. To illustrate these changes, we created a series of maps detailing the changes in the values of Atlantic Yards property values over the course of an eight year span dating from 2005 to 2012.
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MethodsIn order to map these property values we first had to compile our database consisting of assessed parcel property values, as well as market property values from the Kings County Assessors website. The property values were not available for individual businesses, so parcel data had to be used instead. Since this data was only available by parcel, some new data problems arose when trying to produce the maps. Parcel data was only available for purchase, so in order to accommodate for our lack of funding, we digitized our own parcel map of Atlantic Yards based on boundaries from various free property maps online. The property value data was then joined to the digitized parcels, and we mapped the percent change in property values for the years 2005-2008, 2008-2010, and 2010-2012. The property values were then broken down by percentage increase over time, and classified using manual breaks. The breakdown of the categories is as follows:
< 0%: Decrease in value
0 % - 25%: Minimal Increase 25% - 50%: Slight Increase 50% - 75%: Moderate Increase 75% - 100%: High Increase >100%: Very High Increase |
Results
In general, the assessed values followed a trend similar to what one would expect. As time elapsed, values increased. The greatest increases by percent came between the years 2005 and 2008, which can be attributed to 3 main factors.
1. In this type of urban market, property value should appreciate over time.
2. The announcement to relocate the stadium to Atlantic yards came in 2003 when the team was purchased by Bruce Ratner.
3. The stadium was originally scheduled to open in 2006, and potential real estate investors were salivating at the idea that their property could be located in this
area.
Around 2008 the real estate market took a massive downturn, and that was evident by the overall extreme decrease in values of these parcels in the years of 2008, ’09, and ’10. It is important to note that many of the values were back on the rise by 2010, but for the most part almost every parcel saw a decrease in value at some point during this period. The only real anomaly during this time was a vacant lot located in the eastern portion of Atlantic Yards. From 2008 to 2010 the value of this lot rose an astounding 4616.16%. This rise in value can be attributed to the construction of a brand new 12 story office building on that particular lot.
From 2010 to the present day, values have generally been rising, with a few exceptions. The market has slowly been growing, and in 2010 the construction crews for the Barclays Center broke ground, instilling a newfound sense of hope and prosperity. One result that did stick out was that of Flatbush Avenue’s Salon, Spa, and Beauty Supply Store, which experienced a 45.15% decrease in value from 2010 to 2012, after experiencing the 2nd largest increase of any parcel from ’08 to ’10. It also happens that the stores located within a close proximity to this store experienced either a decrease in value, or a very minimal increase. From our time spent in the field I would suggest that this particular cluster of stores displayed the least visual appeal, and that may be evidence of the decline in value, or possibly the reason for the decline.
In general the results were very much the same for market values as they were for the assessed values. In fact, in many cases the numbers were exactly the same. The one noticeable trend was that of the decrease in value of businesses associated with the food industry. Almost all food service stores and the one grocery store saw very minimal increases in property values, and in most cases saw a decrease. The increasing gentrification of this area brings with it stores that are more chic and modern, and there seems to be no place left for the local eatery.
1. In this type of urban market, property value should appreciate over time.
2. The announcement to relocate the stadium to Atlantic yards came in 2003 when the team was purchased by Bruce Ratner.
3. The stadium was originally scheduled to open in 2006, and potential real estate investors were salivating at the idea that their property could be located in this
area.
Around 2008 the real estate market took a massive downturn, and that was evident by the overall extreme decrease in values of these parcels in the years of 2008, ’09, and ’10. It is important to note that many of the values were back on the rise by 2010, but for the most part almost every parcel saw a decrease in value at some point during this period. The only real anomaly during this time was a vacant lot located in the eastern portion of Atlantic Yards. From 2008 to 2010 the value of this lot rose an astounding 4616.16%. This rise in value can be attributed to the construction of a brand new 12 story office building on that particular lot.
From 2010 to the present day, values have generally been rising, with a few exceptions. The market has slowly been growing, and in 2010 the construction crews for the Barclays Center broke ground, instilling a newfound sense of hope and prosperity. One result that did stick out was that of Flatbush Avenue’s Salon, Spa, and Beauty Supply Store, which experienced a 45.15% decrease in value from 2010 to 2012, after experiencing the 2nd largest increase of any parcel from ’08 to ’10. It also happens that the stores located within a close proximity to this store experienced either a decrease in value, or a very minimal increase. From our time spent in the field I would suggest that this particular cluster of stores displayed the least visual appeal, and that may be evidence of the decline in value, or possibly the reason for the decline.
In general the results were very much the same for market values as they were for the assessed values. In fact, in many cases the numbers were exactly the same. The one noticeable trend was that of the decrease in value of businesses associated with the food industry. Almost all food service stores and the one grocery store saw very minimal increases in property values, and in most cases saw a decrease. The increasing gentrification of this area brings with it stores that are more chic and modern, and there seems to be no place left for the local eatery.
Conclusion
There is absolutely no doubt that the landscape immediately surrounding the Barclays center is experiencing a massive overhaul. The impacts of gentrification are already evident by the sharp increases in real estate values and purchase prices, the influx of more ritzy, modern businesses, and the plans to include more “affordable” housing units in the area. This entire development project has caused division between many of the residents of the area. Those opposed to development in this area tended to be lower income residents and business owners with ties to the local area. Those in favor of the development were business owners that stood to make a lot of money from the sale or renting out of their real estate, as well as members of the more affluent community seeking to purchase or rent houses in the area. When the developments are finished it will be very interesting to see how the overall character of the Atlantic Yards/Prospect Heights landscapes change. Will the low rise architectural aesthetic remain intact, or will the Manhattanization of this area spread like bacteria across the rest of Brooklyn?
Sources
"Subsidized? Yes. "Affordable?" Hardly." Develop Don't Destroy. Brooklyn. N.p., 31 Mar. 2008. Web. 10 May 2012. http://dddb.net/php/aboutratner.php.
Cover Photos by Sam Krueger
Cover Photos by Sam Krueger