New York City has lost 5.3% of its population since the beginning of COVID-19 in April 20 – about 468,000 people.

At the height of the pandemic, these losses were led by the rich. Many people cited high taxes as the cause and both Mayor Eric Adams and Gov. Kathy Hochul rejected proposals to raise taxes on the rich for fear of driving more of them to low-tax states.

But a new report from the Fiscal Policy Institute, a left-leaning policy group, said the latest census and state tax filings have found that millionaires are returning to New York City in large numbers.

And, as it turns out, more than three-quarters of the rich people – as defined as families making $815,000 – who left during the pandemic moved to other high-tax states, including Connecticut, New Jersey and California.

So, who has been leaving, where are they going and why?

Families making between $32,000 and $65,000, a disproportionately high share of which are black and Hispanic, have led the exodus.

They were followed by families earning $104,000 to $172,000 a year, an above-average income in many parts of the country but a more modest one in New York City.

Where are they going? The most popular place was, as many would expect, Florida.  But the next were New Jersey, Connecticut and Pennsylvania – none of which is known for having low taxes.

The attraction for many is not low taxes. It’s the availability of housing at affordable prices. This is something New York does not have thanks to zoning, land-use restrictions and — especially in the suburbs — community opposition.

Studies show that a lack of housing is the reason for the high cost of living on Long Island – not high taxes.

This is particularly true of town and county taxes, which represent a relatively small part of the money collected in property taxes but have been the focus of recent political campaigns. The main factor here is school taxes, which account for about two-thirds of the local burden.

Hochul has said New York has a shortfall of 800,000 housing units.

This shortfall drives up housing costs for everyone and forces households and jobs from the metropolitan core to the far reaches of suburbia, and from bigger cities and metro areas to smaller and cheaper ones. And out of New York.

This is not a good thing for New York’s economy.

Andrew Beveridge, the president of Social Explorer, a demographic firm that reviewed the new data, told The New York Times that those leaving form the backbone of many essential services and white-collar industries.

And continuing to lose these residents, Beveridge said, could jeopardize the city’s uneven recovery.

“If you want a subway system, an office sector, a restaurant industry, you need these people,” he said.

Businesses across Long Island have experienced similar problems in finding people to fill job openings.

Matt Cohen, president and CEO of the Long Island Association for a Better Long Island, a business organization that promotes development, recently echoed Beveridge’s concerns at a briefing on Gov. Hochul’s efforts to address housing in New York.

“Long Island’s economy continues to be challenged by housing costs and availability,” Cohen said.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said at the briefing the need for housing is particularly important on Long Island.

“Companies invest here because of talent, healthcare, natural resources, and great schools,” Visnauskas said. “People want to grow roots here near their jobs, our elders want to downsize and stay in their communities, teachers and first responders need good, safe homes that they can afford, and we want to work together to make that happen.”

The problem with expanding housing in Nassau County was highlighted in living color this past week with the release of a Long Island Zoning Atlas by Community Development Long Island, Rauch Foundation, Long Island Community Foundation, and the CUNY Graduate Center.

Zoning Atlas data shows that single-family homes can be built almost everywhere – on 99.5% of Long Island’s districts – without a public hearing.

But the data finds that only 8.5% of zoning districts allow two-family homes, and even fewer, just 3.6%, permit three-family and four or more-family housing.

This is consistent with housing data that shows Nassau County and Suffolk have among the highest percentage of single-family housing across counties of their size in the country.

Hochul made two attempts to address the state’s housing crisis.

The first was to permit the construction of accessory dwelling units for all single-family homes – a popular technique in other states. Known as granny flats, this would permit the construction of units in basements and backyards.

The second was a call for a 3% increase in housing units over three years in areas like Nassau focused on transit-oriented developments with the possibility of the state stepping in if the 3% goal was not met

Elected officials in Nassau County vehemently opposed both proposals, which were eventually withdrawn.

The officials said the proposals would destroy the suburban character of Nassau County and usurp their role in controlling local zoning.

“Gov. Hochul’s housing plans will flood our communities with thousands of apartments and high-density zoning, turning our suburbs into overcrowded urban centers,” North Hempstead Supervisor Jennifer DeSena said about the plan to require a 3% increase.

Town Democrats and Republicans said Hochul’s plan was a threat to Nassau’s “suburban aesthetic” with “our lush, quiet and peaceful tree-lined streets.”

This is not true. To reach Hochul’s 3% goal, another 2,364 housing units would have to be built in North Hempstead over three years – 788 a year. Hardly, an explosion of housing.

But it was very effective politically. Nassau’s Republican officials had great success running against Hochul’s proposals.

The Republicans and some Democrats said they were in a better position to determine the zoning needed in their community while not necessarily committing to an increase in housing.

In places like Mineola and Roslyn, village governments have approved additional housing. In Mineola’s case, with extensive discussion with the community.

Other places, particularly in North Hempstead, have routinely opposed housing, mostly citing concerns about traffic and school overcrowding.

And then there is the history of housing in Nassau County and North Hempstead.

From 1950 to 1970, Nassau County’s population grew from 672,765 to 1.43 million people, according to the U.S. Census Bureau. But since 1970, Nassau’s population has declined by 32,306.

North Hempstead’s population has followed a similar pattern as the county. It increased from 142,613 to 235,087 in 1970. Since then in the past 52 years, the population of the town has grown by less than 3,000 to 237,639.

And among 32 counties in New York City and its suburbs, Suffolk ranked 32nd and Nassau ranked 31st in the number of housing permits issued from 2010 to 2020, according to a Regional Plan Association report last year.

This did not happen by accident. It was a function of some of the strictest zoning laws anywhere and a general unwillingness to make exceptions.

During her successful re-election campaign, DeSena said she supported the town developing a master plan to address housing in North Hempstead.

That sounds like a good idea and the Long Island Zoning Atlas offers a helpful tool to assist the town in getting started.

We hope DeSena’s call for a master plan was not just an idle campaign promise and she makes the master plan a priority in her second term.

We believe Nassau County can have economic growth, new housing and maintain its suburban character.

A master plan for North Hempstead would be a good start.

Failure to do so would ignore the most serious threat to the economy of the town and Nassau County in the future.