New York City Faces Rental Housing Shortage As Small Building Filings Spike

The Real Estate Board of New York (REBNY) has published its Q4 2023 New Building Construction Pipeline Report, which examines job application filings for new buildings submitted to the New York City Department of Buildings.

Increase in Filings, but a Divide Emerges

While there was a significant increase in new building filings in Q4 2023, reaching 728 filings, a 48% increase over the historical average, this surge was primarily driven by small building projects, particularly on Staten Island. Conversely, plans for large multifamily buildings remained at historic lows, with only 9 filings for buildings containing 100 or more units.

Impact on Housing Pipeline

Despite the high number of total filings, there was no corresponding increase in the city's housing pipeline. In fact, the opposite occurred, with proposed dwelling units in Q4 2023 totaling 16% lower than the historical average dating back to 2008.

Stakeholder Perspectives

Zachary Steinberg, REBNY Senior Vice President of Policy, emphasized the urgent need for policies to stimulate rental housing construction, underscoring that the housing crisis cannot resolve itself without government intervention.

“This data makes clear that New York City is not building the kind of multifamily rental housing needed to address our worsening supply crisis,” said Zachary Steinberg, REBNY Senior Vice President of Policy. “Without policies in place to spur greater rental housing construction, one cannot expect this problem to fix itself. Elected officials in Albany must take action to create new housing that will support our housing market and broader economy.”

Gary LaBarbera, President of the Building and Construction Trades Council of Greater New York, highlighted the importance of generating rental housing projects to create jobs and support New Yorkers' socioeconomic advancement.

Carlo A. Scissura, President & CEO of the N.Y. Building Congress, stressed the ongoing shortfall in multifamily rental housing construction and called for collaborative efforts between industry leaders and policymakers to address the escalating housing crisis.

The report underscores the pressing need for increased multifamily rental housing construction in New York City. Stakeholders urge policymakers to take decisive action to spur construction and alleviate the housing shortage, emphasizing the importance of collaboration between government and industry to achieve meaningful solutions.