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Congestion Pricing, Continued



Back in March, we were thinking about doing a story about congestion pricing and real estate. Now that some time has passed and it’s closer than we think, I am back asking about it. 

EXAMPLE: One agent mentioned that a buyer is asking to look at apartment above 60th but is concerned because his parking garage is on 54th Street. Every signal day the buyer will be taxed to come back to his home/garage on 54th Street. And then he’ll  leave the city on the weekends so he’ll again be taxed when he returns. That’s over $275/month and over $3,300 a year. 
 
For those that need a refresher: 
Beginning April 1, 2020,the City will charge drivers who enter Manhattan south of 60th Street—essentially, the entire island below Central Park—under the guise of funding the dilapidated Metropolitan Transit Authority. By December 31, 2020, the city will build electronic toll gantries with license-plate readers at every stop along the "border" at 60th Street, in what will be called the Central Business District. No exact tolls have been set, although an early proposal called for daily charges of $11.52 per car and $25.34 per truck. Cuomo said that the congestion charge will fund the MTA subways and buses with $15 billion over an unspecified time frame and that all of the money will be dedicated to the MTA. The city will make the tolls variable—similar to the way Los Angeles changes carpool-access fees depending on traffic—and provide "exemptions and credits" as wholly decided by the MTA's six-member (unelected) Traffic Mobility Review Board.
 
Link to NYC Gov. breakdown of congestion pricing:
 
Already approved ride-hailing services and taxis surcharge link:
 
FURTHERMORE, how is the congestion pricing impacting real estate and people looking to purchase/rent in those areas? Does congestion pricing impact commutes into the city so an influx of people will move back into the city so they don’t pay it? Any examples like the one above? 
 
The vast majority of New Yorkers do not have cars so their day-to-day concerns should be mitigated. Having said that, there are some niche buyers and sellers that could be dramatically affected. Buyers with vacation homes upstate and out east may specifically look above 60th street. Likewise, suburban buyers looking for a pied-a-tier. If I owned a parking garage (or space) 10-20 blocks below 60th Street I would not be happy. Conversely, if I owned a parking garage (or space) just north of 60th Street I would be jumping for joy. On a larger trend, could this be the beginning of the end of Billionaires row and downtown? Will UWS, UES, and Northern Manhattan be the new "it" neighborhoods.



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