New York City's Department of Education (NYC DOE) has faced sharp criticism over its real estate practices, with reports revealing the agency has spent over $5 billion on rented school buildings since 2010, including significant expenditures on vacant or underutilized spaces. In 2024 alone, the DOE reportedly allocated $235.6 million for lease payments across 132 active contracts.
Activist Yiatin Chu brought the issue to light on social media, stating, > "This is how the DOE wastes our money. They rent instead of buy properties, and pay rent (for years) for unopened, severely under-utilized space. For the past 15 years, we’ve wasted over $300 million a year on empty schools." Chu's remarks highlight a long-standing concern regarding the city's approach to its educational infrastructure.
A New York Post investigation in April 2026 corroborated these claims, detailing how the NYC DOE has incurred billions in taxpayer funds by leasing properties from private landlords, often at above-market rates. This spending includes nearly $100 million on rent for more than two dozen 3K early education centers that have remained empty, some for up to five years. Experts suggest these funds could have been better utilized for school construction or academic improvements.
The financial scrutiny comes amidst declining academic performance in city schools. New York City public school students recorded an average of 473 on the math portion of the SAT last year, marking the lowest average in at least seven years. Critics argue that the substantial spending on underutilized real estate detracts from resources that could address these educational challenges.
Commercial real estate broker Adelaide Polsinelli, who reviewed the DOE's portfolio, remarked that it is "always better to own than rent" in most cases, especially given the bureaucratic costs associated with executing DOE leases. She also noted that the city's consistent tenancy often inflates property values, benefiting private owners rather than the public. The NYC DOE has not publicly responded to requests for comment on these specific allegations.
