Race to find housing for Sandy victims as new storm approaches

With power slowly returning to New York and New Jersey and emergency fuel being rushed into the region, authorities have a potentially bigger problem in the wake of superstorm Sandy - where to house the tens of thousands of people whose homes are no longer habitable.

With a freeze expected in some areas yesterday and another, smaller storm on the horizon, the housing problem took on urgency.

Even with power and fuel restored, many houses no longer have functioning heating systems, since floodwater ruined many basement heaters and electrical systems.

"People are in homes that are uninhabitable," New York Governor Andrew Cuomo said. "It's going to be increasingly clear that they're uninhabitable when the temperature drops and the heat doesn't come on." Department of Homeland Security Secretary Janet Napolitano, appearing at a news conference with New Jersey Governor Chris Christie, called housing "the No 1 concern".

She said: "We don't even know yet which of the houses are reparable and which are irreparable losses. Those assessments are going on right now as well as finding temporary housing for individuals who can't move back to their home right away."

New York City alone estimated that about 20,000 people would be left homeless there. Long Island and seaside New Jersey accounted for many more.

"It's unreal what's going on here," said Pinny Dembitzer, president of the Sea Gate Association in a hard-hit seaside neighbourhood in Brooklyn.