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Long Island town's transit-oriented development plan has been derailed by a stunning display of political pandering and cowardice. Heatherwood, a local firm with a 30-property portfolio, had assembled a $154 million, 309-unit project near the Lawrence LIRR stop in Hempstead Town. The town had passed a bipartisan rezoning in 2019 to encourage multifamily projects, and Heatherwood had secured a tax break and PILOTs from the industrial development agency.

    However, local residents voiced their usual concerns about traffic, crime, and community character, and town officials did an about-face, passing a moratorium in 2022 and abandoning the rezoning. Heatherwood is now suing the town, leaving the real estate industry with a clear message: Local government cannot be trusted on Long Island.

    The consequences will be dire, as fewer multifamily projects will be proposed, young people will continue to leave the island, and housing costs will choke the local economy. The courts may rule in favor of Heatherwood, but the damage is already done.

    In other news, Rochester has become the largest city in New York to opt into good cause eviction, a policy that discourages large rent increases. However, the patchwork introduction of this policy across the state will create a natural experiment for economists to study its effects on rents and tenant turnover.

    A new analysis of IRS data reveals that more six-figure earners moved into New York City in 2022 than out, contradicting anecdotal evidence that high taxes and quality-of-life issues are driving them away. However, net migration was negative for lower-income earners, with housing costs and low vacancy rates at affordable apartments being the primary reasons.

    The real estate industry has created a new acronym: ESR, which stands for essential services retail, encompassing food, fitness, beauty, health, and medical services. A joint venture between CenterSquare Investment Management and a state pension fund aims to institutionalize this sector.

    Residential sales include a $23.2 million condominium at Giorgio Armani Residences in Lenox Hill, while commercial sales feature a $23 million purchase of the Macy's store in Downtown Brooklyn. New listings include a $9.95 million condominium in Chelsea, and new building applications have been filed for an 80,489-square-foot project on the Gowanus/Park Slope border.