As an editor for The Real Deal from 2019 through 2024, I largely avoided assigning stories about the congestion pricing debate, which began in 2007 when Mayor Mike Bloomberg proposed charging vehicles to enter Manhattan’s central business district.
Readers occasionally asked me to give it ink, but I didn’t see congestion pricing as having a large impact on real estate — despite claims from opponents that it would depress property values by discouraging people from coming to Manhattan.
If anything, I expected modest gains for property values and rents, which would benefit from faster commutes and the eventual mass-transit upgrades funded by congestion fees. The Real Estate Board of New York supported the plan, which then-Gov. Andrew Cuomo and the state legislature approved in 2019.
From what we have seen since congestion pricing began Jan. 5, the industry’s view has been validated: The data so far show no negative effects on real estate and some positive signs.
Vehicular traffic in Midtown and Downtown and delays at bridges and tunnels are down, as projected, and pedestrian counts and subway ridership are up, as are other measures of activity in the “congestion relief zone” (south of 60th Street). For example, attendance at Broadway shows has increased.
It’s hard to say how much congestion pricing has contributed to these improvements, but the catastrophe that some predicted has obviously not occurred. Gridlock in the central business district was bad for business, including real estate, which is why REBNY, the Partnership for New York City and other business groups supported cordon tolling.
The only prominent business opponents were parking garage owners, for obvious reasons. But the most vocal critics were people who don’t like change — especially fees for something that has been free forever.
Their objections were philosophical, not evidence-based, so the results observed since Jan. 5 are not likely to change their minds. The New York Post did report the gains in subway use, but called it “crowding.”
President Donald Trump’s attempt to rescind the federal government’s approval of congestion pricing is being challenged in court by the Metropolitan Transportation Authority, which is continuing to collect the fees. However that legal fight turns out, we now have at least eight weeks’ worth of data to hold up against claims by either side.
What we’re thinking about: Are any elected officials who campaigned for “local control, not Hochul control” during the state’s housing debate now calling on the Trump administration to let New York rather than Washington control tolling in Manhattan? Send your thoughts to eengquist@therealdeal.com.
A thing we’ve learned: Upstate New York Rep. Claudia Tenney introduced legislation that would make President Trump’s birthday a federal holiday.
Elsewhere…
Readers weighed in on yesterday’s Daily Dirt about fire sprinklers. One noted that outside of New York City, the pipes are PVC, not copper, and prone to freezing. She added that they increase the risk of flooding and mold.
“Given the general improvement in fireproofing in construction, sprinklers are not necessary,” the reader opined.
But another wrote in support of sprinklers, listing six reasons. Stay tuned for the Code Council’s verdict.
The New York Editorial Board called out mayoral candidate Jim Walden for not yet releasing his housing plan, which he claims would create more than 50,000 units per year. For more than two months, board member Akash Mehta said during the board’s interview of Walden, his campaign website has said the plan is “coming this week.”
Walden, an attorney, said he’s still working on it.
He also said he supports helping owners of vacant rent-stabilized units needing extensive repairs — but doesn’t yet know exactly how.
“I support giving grants or some sort of financial benefit to landlords to bring all of those apartments online as fast as possible,” Walden said.
Closing time
Residential: The priciest residential sale Friday was $19.4 million for 155 West 11th Street, 6A. The new West Village condo unit is 3,600 square feet. The Corcoran Group’s Deborah Kern has the listing.
Commercial: The most expensive commercial closing of the day was $8.1 million for commercial condo unit 6A at 131 West 33rd Street in Midtown South. It is 4,300 square feet.
New to the Market: The highest price for a residential property hitting the market was $24.5 million for Unit 6 at 838 Fifth Avenue, a condominium. The apartment is 5,400 square feet and was listed by Compass’ Kyle Blackmon, Samantha Shuman and Ethan Mahgerefteh.
Breaking Ground: The largest new building application filed was for a 27,342-square-foot, two-story vehicle repair shop at 182-25 Eastern Road in Queens. Kevin Paul of H2M Architects is the applicant of record.
— Joseph Jungermann