NY Multifamily Developers Proposed Less Than 10K Units in 2023

Amidst last year's efforts to bolster New York's housing supply, the Real Estate Board of New York (REBNY) reveals that developers fell short, filing plans for only 9,909 residential units across 285 multifamily projects. This starkly contrasts with Mayor Eric Adams' ambitious target of adding 500,000 new homes to the city in the next decade, requiring an annual filing rate of 50,000 units.

December Downturn

In December alone, developers submitted plans for 25 projects with 506 residential units. However, only one project, situated at 3663 White Plains Road in the eastern Bronx, proposed more than 100 homes, with 136 units. This downturn is further emphasized by a significant drop in monthly foundation plan filings, plummeting from an average of 52 in 2022 to 24 in 2023. The total unit filings also witnessed a staggering 78% year-over-year decline.

421-a Expiry Blamed for Slowdown

REBNY attributes these disappointing numbers primarily to the expiration of the 421-a affordable housing tax break in June 2022. The lapse initiated a prolonged period of sluggishness in planning for new residential projects, extending for several months. This setback challenges the city's ability to meet its housing goals.

Policy Uncertainty Looms

Despite Gov. Kathy Hochul's initial commitment to constructing 800,000 new homes in New York over the next decade, obstacles have emerged. The ambitious agenda outlined in her State of the State address failed to pass through the Legislature. Hochul, signaling a shift in strategy, expressed reluctance to present a similarly forceful housing package this year. REBNY President James Whelan, not optimistic about Albany's upcoming housing agenda, emphasizes the uncertainty surrounding state-level support.

Legislators' Pledge Amid City-Level Activity

While uncertainty persists at the policy level, state legislators affirm their commitment to addressing New York's housing shortage in the upcoming year. Despite legislative hurdles, Hochul continues efforts to boost the state's housing supply through executive actions. Simultaneously, the Adams administration at the city level aims to push a comprehensive housing reform package through the City Council, indicating ongoing efforts to tackle the housing challenge in New York.