Fourth straight month with fewer than 30 total filings citywide
Amid the City’s housing supply crisis, the State Legislature continues to ignore or possibly cripple key proposals for increasing production
NEW YORK, NY– The Real Estate Board of New York (REBNY) today released its March 2023 Multi-family Foundation Plan Application Report. Tracking data through March 29, this monthly report reviews applications for residential building foundations submitted by developers to the NYC Department of Buildings (DOB), providing a helpful indicator for upcoming housing production.
The first quarter of 2023 has continued the trend of persistently low foundation activity that began in the second half of 2022 following the expiration of the 421a tax abatement program. According to the report, there were 24 new multi-family foundation filings in March 2023, representing a total of 792 proposed dwelling units. This marks the fourth straight month of fewer than 30 filings citywide. By comparison, there was an average of approximately 73 filings per month during the first half of 2022.
There were 3 filings for a new building with more than 100 residential dwelling units in March, up from just one in each of the previous two months. These projects accounted for 364 proposed units, nearly half of the proposed units this month. This was the fourth month in a row with fewer than five large building filings. These three projects include one mixed income project that requires and will receive City subsidy to be built, and two likely condominium projects. Of note, the condominium project at 110 East 16th Street was the first project with more than 100 units in Manhattan with an initial foundation filing since 2022.
As the housing pipeline continues to struggle, New York City also continues to face a worsening housing supply crisis. Experts have noted that the city needs 560,000 new apartments by 2030 just to keep pace with projected growth.
While the Governor has proposed multiple housing initiatives, such as proposals to lift the 12 FAR cap or extend the completion deadline for 421-a projects, the State Legislature stripped these proposals from its one-house budget bills and some members have suggested not addressing housing in the budget at all.
“There are just days left to decide the State budget, and this report is just one more reason why State legislators need to stop delaying and take steps to create more rental housing in New York City,” said REBNY Senior Vice President of Policy Zachary Steinberg. “It is long past time for lawmakers to treat the lack of rental housing as the crisis that it is.”
The full March 2023 Multi-family Foundation Plan Application Report, including additional analysis on foundation applications broken out by building size and geography, can be downloaded here.
REBNY’s monthly Multi-family Foundation Plan Application Report supplements the trade association’s quarterly Construction Pipeline Report, which tracks new building job filings for all new projects (office, retail, hospitality and multi-family). These job filings typically occur well before any substantive development work has started and many additional steps such as financing, plan review and amendments will still need to occur. By providing additional perspective on how many multi-family projects have filed foundation applications, the monthly report provides a more nuanced look at projects that may soon begin construction.
For more information about REBNY research reports, visit //go.rebny.com/Reports.
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ABOUT THE REAL ESTATE BOARD OF NEW YORK
The Real Estate Board of New York (REBNY) is the City’s leading real estate trade association. Founded in 1896, REBNY represents commercial, residential, and institutional property owners, builders, managers, investors, brokers, and salespeople; banks, financial service companies, utilities, attorneys, architects, and contractors; corporations, co-partnerships, and individuals professionally interested in New York City real estate. REBNY conducts research on various civic matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes, and other city, state, and federal legislation. REBNY regularly publishes market data, policy reports, and broker surveys. In addition, REBNY provides for its members: informational, technical, and technological resources; networking and charitable service opportunities; qualifying and continuing education courses; professional education programs, seminars, and designations; career-changing awards; legal advice; and a wide range of additional member benefits. For more information, please visitwww.rebny.com.