A Big Apple for the Teacher

New York City is apparently offering housing subsidies of up to US$14,600 to attract teachers with 2+ years of experience. Oddly, the article doesn’t point out that this isn’t a particularly efficient way of attracting the best teachers (the value of the subsidy is presumably much smaller if you live with your parents or in a part of town where rents are lower). But I’m guessing this is the only way they could reach a deal between Joel Klein and the teacher unions.

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8 Responses to A Big Apple for the Teacher

  1. Peter says:

    And won’t subsidies to potential housing buyers simply push UP prices, since the level of effective demand is greater, and thereby increase the shortage of affordable housing?

    As a friend of mine in Berlin used to say: “There are no cheap flats here. No matter how much money you are willing to pay, you can’t buy a cheap flat!”

  2. Patrick says:

    You still get up to 5 times as much if you go to a country town in the US.

    Also ironic from the home of rent control.

  3. Ian Holsman says:

    FYI
    They also tried/are still doing this in the San Jose area. It started about 2-3 years ago.

  4. Matt Cowgill says:

    Something I’ve been interested in for a while: Are there any substantive studies of the effect of Australia’s tax treatment of negative gearing on 1) rental prices and 2) housing purchase prices?

  5. Matt Cowgill says:

    ps sorry, I know that was off topic….

  6. Andrew Leigh says:

    Matt, off-topic is fine. I do recall reading a paper a few years back which argued that abolishing NG wouldn’t cause a huge boom in rental prices – I don’t have the reference here, but we cited it in the footnotes to Imagining Australia (when talking about our proposal to abolish NG).

  7. f says:

    “which argued that abolishing NG wouldn’t cause a huge boom in rental prices”

    because some of the renters would actually be able to afford houses?

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