Categories: Articles, Columnists, Harlem, Rev. Dr. Charles Butler,
For those who are now just coming to the realization that owning a home makes good sense, congratulations on reaching that conclusion. However, trying to buy a home now in Harlem can be a very expensive investment. For the past 10-15 years or so, the prices of homes in Harlem have been skyrocketing faster than a rocket heading into outer space!
The great rush to buy a home in Harlem is over, and for most of the Harlem’s residents, it’s now too late to buy that multi-family brownstone you always dreamed about. If you are fortunate maybe you can be selected from a NYC Department of Housing, Preservation and Development (HPD) lottery to win a subsidized unit (usually co-ops or condos) at an affordable price. But those opportunities are a long shot at best, as the lottery housing stock in Harlem has just about dwindled to nothing.
The irony is that when Harlem was affordable, the few people who could afford to buy wanted nothing to do with Harlem and moved out. They thought it would be a bad investment to buy in a community that was run down and had low property value, and there would be very little return on their investment.
They wanted to live in a safer environment and thought that moving farther out of the inner city would create a better home and raise the standard of living for their family. Most of the banks also had ‘red-lined’ much of Harlem to such an extent that those who had the foresight of seeing the value of owning property in Harlem could barely find a bank to approve their mortgage.
Plus, only a few people understood the advantages of homeownership, especially the tax benefits and the creation of wealth through building up the equity in the home.
Now that Harlem has become a very attractive community, everyone wants to purchase a home in the area. The parks are clean, and crime has decreased. It’s ironic because for so many people, those who were born in Harlem, the ones who have lived in Harlem all of their lives, have worked in Harlem, attended schools in Harlem, and have suffered through all the plight, poverty, and unpleasantness are now unable to afford anything in Harlem because of the high prices.
But if you are set on purchasing a home in Harlem, do not despair. In spite of the high prices, there are still some affordable properties in Harlem that can be purchased. The most affordable units are co-operatives being sold by the Housing Development Fund Corporation (HDFC). These units are reasonably priced and provide an excellent opportunity to create equity to make a larger purchase in the future. Set a realistic goal and stick to it. You can make homeownership a reality.
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