Like many other major cities around the world, New York is facing its worst housing shortage in three decades. That’s part of the reason why apartment rental prices are skyrocketing, forcing residents to move to the outskirts of the city or even to more affordable cities, according to Bloomberg. According to New York City census data, more than 482,257 residents are expected to leave the city between 2020 and 2023.

To try to alleviate this population exodus, the New York City Department of Housing Preservation and Development has launched a surprising initiative: a raffle of apartments priced well below market value. The next raffle will be for 17 apartments near Central Park priced under $175,000.

A raffle is being held for cheap apartments in ManhattanNew York has begun a project to sell apartments on Manhattan’s exclusive Upper West Side, just two blocks from Central Park and the Museum of Natural History, for the affordable price of $173,801.

The 17 apartments planned to be raffled off range in size from 22 to 50 square meters and are distributed between one and three bedrooms. The apartments that the Housing Department plans to raffle off are located in a five-story building with no elevator, but according to the details of the promotion, the apartments have wooden floors and air conditioning.

Lottery for those who cannot afford to buy an apartmentThe lottery is a formula that gives equal purchasing opportunities to all people who have previously met a series of economic conditions in order to have access to the option of purchasing these apartments.

Only people with incomes below 120% of the area median are eligible to participate, and prospective buyers cannot have more than $280,000 in assets. They are also required to make a down payment of 5% of the property price, and there are a number of restrictions on subsequent sales. The next draw is scheduled for August 27, and more than 10,000 people have already applied to participate, reflecting the high demand for affordable housing in the city.

A well-received initiativeThe city’s Department of Housing Preservation and Development, through the government platform NYC Housing Connect, has been holding periodic lotteries of this kind for a year, offering affordable housing. In the past fiscal year, the department raffled off 9,550 affordable homes.

The drawings were launched as part of current New York City Mayor Eric Adams’ commitment to housing policies. The current council is working on a plan to increase housing supply in the city, including reclassifying land to build more than 7,000 new homes in the Bronx.

There is already a history of similar projects being drawn up in neighborhoods like Astoria, Queens, and Manhattan’s Upper East Side, all of which aim to provide affordable housing to prevent New Yorkers from having to live outside the city at high prices.

Housing on public landHow is it possible that apartments on the same street as properties like . are being put on the market for less than $175,000? Orleanswhere is an apartment that recently sold for $7.8 million? The answer lies beneath its foundation.

Properties that are being drawn in NYC Housing Connect programs were built on public land or received tax breaks and subsidies during their construction, so they are now classified as public housing. The square footage of the houses to be drawn is around $3,650 per square foot. According to data from real estate portal Properstar, the price per square foot of an apartment in New York in July 2024 is estimated to be around $15,156.

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Image | Unsplash (Alejandro Garay, Jorge Salazar)