Credit Crisis Take a Toll on New York City Housing Market

A rising number of foreclosures and the global credit crisis are taking a toll on New York City's residential market, which was long considered bullet-proof. WNYC's Bob Hennelly has more:

REPORTER: On average each day 50 new foreclosures are filed Citywide. The hardest hit neighbourhoods include Jamaica and Bellrose in Queens. They account for a fifth of the 12,000 foreclosures filed from January through August. While the backlog of distressed properties grows, Union leader Ed Malloy with the City's Building Trades says demand for new residential construction is off dramatically.

MALLOY: Not only affordable housing but also the high end residential. We've seen that really slow down. the permits for construction are down by 40 to 50 percent.

REPORTER: Housing advocates are hopeful about new state laws that give stressed homeowners stronger protections. They say they could help ease the worst foreclosure crisis in decades.

For WNYC I'm Bob Hennelly.