New York City needs to dramatically increase its stock of affordable three-bedroom apartments if it wants to halt the “exodus” of young families and generally make urban areas more affordable, according to a new report from the Center for an Urban Future.

The report, “5 Ideas for Retaining NYC’s Young Families,” addresses affordability challenges and ways to make urban areas more affordable, related to housing, schooling, child care and summer camp, mostly with modest government interventions.

The policy prescriptions to make urban areas more affordable, which include proposals for making child care more affordable and freeing up more large apartments, come as inflation and affordability issues have been top of mind for policymakers and consumers nationwide, no less in New York City.

Eli Dvorkin, editorial and policy director of the Center for an Urban Future, said New York City is “fantastic at attracting young people in their twenties, but we’re failing to keep them as they start their families.”

He added, regarding making urban areas more affordable: “That’s a major risk to the city’s long-term economic strength, tax base and neighborhood stability."

A February analysis by the listings site StreetEasy found the median rent for a three-bedroom apartment in Manhattan was about $7,500 a month. Median rents ranged from $3,500 to just under $4,000 in the Bronx, Brooklyn and Queens, while they were about $3,000 in Staten Island, according to the analysis.

According to the report, the number of children under 5 in New York City experienced "a staggering" 18% fall between April 2020 and July 2023 — far greater than the decline experienced nationwide (4.6%) or in major cities like San Francisco (15.4%), Chicago (14.6%) and Los Angeles (14.2%).

In many cases, the report states, the decline was due to “an exodus of young families” to the suburbs or to other, more affordable states. Reversing this trend and making urban areas more affordable, the report argues, is critical for the city’s economy because many departing householders leave “as they enter their prime earning ages.”

“As they raise children, families also tend to be especially invested in the long-term success of the city,” the report states. “They contribute to stable communities by increasing civic engagement, boosting local economies through spending, and driving demand for family-friendly amenities like quality schools, parks and safe neighborhoods.”

Read the full article about making New York City more affordable for families by Arun Venugopal at Gothamist.