NEW YORK (Reuters) – A housing crisis loomed in New York City as victims of superstorm Sandy struggled without heat in near-freezing temperatures on Sunday and nearly 1 million people in neighboring New Jersey shivered in the dark without power.

Fuel shortages and power outages lingered nearly a week after one of the worst storms in U.S. history flooded homes in coastal neighborhoods. Mayor Michael Bloomberg said 30,000 to 40,000 people inNew York City alone would need shelter.

"We don't have a lot of empty housing in this city. It's a problem to find housing. We're not going to let anybody go sleeping in the street," Bloomberg said. "But it's a challenge and we're working on this as fast as we can."

Temperatures were forecast to fall close to freezing overnight and an early-season "Nor'easter" storm was expected to hit the battered region this week with strong winds and heavy rain.

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