Odd Lots Podcast Summary: Jersey City's Mayor on How the City Built So Much Housing

Release Date: June 5, 2025 | Host/Author: Bloomberg's Joe Weisenthal and Tracy Alloway

Introduction: Housing Affordability Takes Center Stage

In this episode of Bloomberg's Odd Lots podcast, hosts Joe Weisenthal and Tracy Alloway delve into the pressing issue of housing affordability, a topic that has surged to the forefront of national discourse. Moving away from their usual focus on macroeconomic trends, the hosts turn their attention to local politics, highlighting Jersey City's remarkable success in housing production as a case study.

Interview with Jersey City's Mayor, Mark Reape

[03:57] Mayor Mark Reape:
"We've been the backbone economically of the state of New Jersey. I've been the mayor here for 12 years, unapologetically pro-growth. You can see the skyline change across the river. It's been a good story and we're growing, and I'm very proud of the changes that have happened."

Mayor Reape provides an overview of Jersey City's transformative growth over the past decade, noting a 25% increase in housing stock and a significant rise in building permits—from 2% to over 10% of the state's total. His administration's pro-growth stance has been instrumental in reshaping the city's skyline and expanding its housing availability.

Challenges in Building Affordable Housing

[04:28] Tracy Alloway:
"What's the biggest choke point or hurdle when it comes to building more affordable housing?"

Mayor Reape identifies several key obstacles:

1. Home Rule and Municipal Fragmentation:
   New Jersey's 564 municipalities each wield significant zoning control, complicating statewide housing initiatives.
   [04:50] Mayor Reape:
   "In New Jersey, we definitely have an incentive program that is complicated. We have zoning with home rule. So you have a lot of municipalities, which is problematic."

2. NIMBYism (Not In My Backyard):
   Local opposition often stalls or derails housing projects, especially those aimed at increasing affordability.
   [05:20] Mayor Reape:
   "Generally, the NIMBY sentiment monopolizing the conversation. How do you wrestle that away from them is different in each city or state."

3. Political and Bureaucratic Hurdles:
   The intertwining of politics and development creates uncertainty, deterring potential investors and developers.

Strategies for Expanding Housing Supply

1. Revamping Tax Abatements

[08:23] Mayor Reape:
"We changed the tax abatement process to map it to census tracts based on income. This provided clearer incentives for developers to invest in underserved areas."

By aligning tax incentives with economically disadvantaged census tracts, Jersey City attracted a broader pool of developers, reducing reliance on a small, politically-connected group and fostering a more inclusive development environment.

2. Inclusionary Zoning and Set-Asides

[07:52] Mayor Reape:
"We target about 20% of a housing development to be a blended affordable component, such as workforce or low-income housing. This is tied to incentives like tax abatements from the city."

This approach ensures that new developments contribute to affordability without compromising the overall project viability. It balances market-rate housing with affordable units, addressing diverse community needs.

3. Marketing and Developer Relations

[10:27] Mayor Reape:
"We conducted a marketing campaign to brand Jersey City as a pro-growth destination, matching private investment dollars with city funds to attract new developers."

By proactively promoting the city and establishing a less political, more business-friendly environment, Jersey City successfully drew in new developers, expanding housing supply efficiently.

Addressing NIMBYism and Municipal Resistance

[13:42] Tracy Alloway:
"How do you deal with the NIMBYs and localities that resist housing projects?"

Mayor Reape outlines a multifaceted approach:

1. Transparency and Information Sharing:
   Highlighting cooperating municipalities to set positive examples.
   [14:00] Mayor Reape:
   "Creating transparency around your municipality's progress can shift the narrative away from NIMBYism."

2. Carrot and Stick Policies:
   Providing incentives for compliance while enforcing obligations through state-level mandates.
   [15:15] Mayor Reape:
   "Tie dollars and resources to municipalities that are cooperating. Without a carrot and stick approach, mayors won't move forward."

3. Shared Services Over Consolidation:
   Focusing on shared municipal services to reduce redundancy and increase efficiency without full consolidation.
   [17:08] Mayor Reape:
   "Shared services can leverage resources across municipalities, addressing inefficiencies without forcing complete mergers."

Improving Transit Infrastructure and Congestion Pricing

[25:10] Joe Wiesenthal:
"Are you the only candidate who supports congestion pricing, and how do you sell it?"

Mayor Reape advocates for congestion pricing as a means to fund mass transit improvements:

1. Health and Environmental Benefits:
   Highlighting reduced emissions and improved public health.
   [25:24] Mayor Reape:
   "If you care about health or the environment, you should support congestion pricing."

2. Economic Rationality:
   Emphasizing that those most likely to benefit from congestion pricing are already affluent drivers who can afford the surcharge, thereby funding broader transit benefits for the majority.
   [25:34] Mayor Reape:
   "Who is the person that drives their personal vehicle from New Jersey every day to Midtown Manhattan, paying $1,500 to park? It's not regular working-class people."

3. Regional Cooperation:
   Stressing the need for a unified approach between New Jersey and New York to effectively implement and benefit from congestion pricing.
   [25:45] Mayor Reape:
   "We need a regional conversation around mass transit. The current climate isn't productive."

Consolidation and Shared Services as Cost-Cutting Measures

[16:40] Tracy Alloway:
"Is consolidating municipalities to cut costs a viable solution?"

Mayor Reape explains the focus on shared services rather than outright consolidation:

[17:08] Mayor Reape:
"Shared services allow municipalities to pool resources for departments like health and animal control, which don't need to be duplicated across 564 municipalities."

This strategy aims to reduce administrative overhead and improve service quality without imposing the drastic measure of merging municipalities.

Combatting Housing Affordability in a Desirable Region

[22:14] Joe Wiesenthal:
"Is worsening affordability in highly desirable areas inevitable?"

[23:13] Mayor Reape:
"You could definitely slow the growth of rental increases. We've seen that in Jersey City by increasing supply. However, regional solutions involving New York are essential since Jersey City is impacted by NYC's lack of housing construction."

While acknowledging the challenges posed by high demand in desirable locations, Mayor Reape believes that strategic supply expansion can mitigate some of the affordability pressures, albeit within the larger context of regional housing dynamics.

Replicability of Jersey City's Model

[38:36] Tracy Alloway:
"How replicable is the Jersey City model for places like New York or Hoboken?"

Mayor Reape responds by emphasizing the unique municipal landscape of New Jersey and the importance of state-level leadership with municipal experience:

[39:00] Mayor Reape:
"As governor, understanding leverage points at the municipal level is crucial. Jersey City's success stems from its specific strategies, but broader application requires tailored approaches based on each city's context."

Conclusion: Navigating Political and Structural Barriers

Throughout the episode, Mayor Reape underscores the importance of political will, structural reforms, and innovative policy solutions in addressing housing affordability. By tackling zoning complexities, reducing political interference, and fostering collaborative relationships with developers, Jersey City serves as a potential blueprint for other municipalities grappling with similar challenges.

[41:17] Tracy Alloway:
"The big question is still how replicable this is elsewhere, especially in areas with fewer vacant lots like Manhattan."

[41:39] Joe Wiesenthal:
"The degree to which other cities can emulate Jersey City's success depends on their starting points and specific local conditions."

The discussion closes with an acknowledgment of the complexities involved in replicating Jersey City's achievements but remains optimistic about the potential for strategic policy interventions to improve housing affordability nationwide.

Notable Quotes

• Mayor Mark Reape on Pro-Growth:
  "We've been the backbone economically of the state of New Jersey. I've been the mayor here for 12 years, unapologetically pro-growth." [04:07]

• On Overcoming NIMBYism:
  "How do you wrestle that away from them is different in each city or state." [05:28]

• Regarding Tax Abatements and Census Tracts:
  "We mapped it to the census tract, which seemed like a reasonable way to map it towards income." [08:23]

• On Congestion Pricing Benefits:
  "Who is the person that drives their personal vehicle from New Jersey every day to Midtown Manhattan, paying $1,500 to park? It's not regular working-class people." [25:34]

• On Shared Services:
  "Shared services allow municipalities to pool resources for departments like health and animal control." [17:08]

Final Thoughts

This episode of Odd Lots provides an insightful exploration into the intricate challenges and innovative solutions surrounding housing affordability. Mayor Mark Reape's experiences in Jersey City offer valuable lessons on navigating political fragmentation, incentivizing development, and balancing market-rate with affordable housing—all crucial for other cities aiming to replicate similar successes.

Listeners gain a comprehensive understanding of how local leadership, when combined with strategic policy reforms, can drive significant progress in housing production and affordability, even amidst broader regional constraints.

For more detailed discussions and insights on housing policy and economic trends, visit Bloomberg's Odd Lots and subscribe to their newsletter or Discord community.