New York City’s costly reliance on hotels to house thousands of migrants shows no sign of ending, as officials push to extend emergency shelter contracts—draining billions from city coffers and sparking calls for drastic changes to address the escalating crisis.
New York City’s use of hotels as emergency shelters for migrants is set to continue into 2025, as the city’s Department of Homeless Services pushes for a new contract to secure 14,000 rooms, The Post has learned. This move comes amid mounting concerns about the growing costs of housing the migrants, which are projected to exceed $2.3 billion over the past two years and the current fiscal year combined.
As of now, about 150 hotels across the city are housing migrants, a solution that has both financial and logistical implications. The total spending on migrant services over three years is expected to reach $5.76 billion, much of which is being spent on hotel rent in Midtown and downtown Manhattan, a tourist hub. Critics like Nicole Gelinas, a senior fellow at the Manhattan Institute, argue that relying on hotels indefinitely to shelter migrants is unsustainable. "The taxpayers can’t pay for this indefinitely," she remarked, calling on Governor Kathy Hochul to take control of the situation, especially with Mayor Eric Adams' administration in legal turmoil.
Some outer borough hotels, however, are benefiting financially from this arrangement, with the city paying $352 per room per night, offering these establishments a stable revenue stream. Hotels with lower occupancy rates have found a lifeline in the city's contracts, providing them with consistent business, although critics argue that Manhattan’s tourism industry is suffering as more hotels are repurposed for shelters.
Despite plans for 30-day limits on individuals' stays and 60-day limits for families in the shelters, the demand for emergency housing remains high. The city's Hotel Association, led by CEO Vijay Dandapani, is applying for a new contract to continue overseeing the program, ensuring that the migrant shelter system remains operational for the foreseeable future.
The debate over how long New York City can rely on this approach highlights the strain on both resources and local industries, as officials scramble for longer-term solutions.
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