Multi-Family Building Foundation Filings in March 2024 Continue a Downward Slide

NEW YORK, NY– The Real Estate Board of New York (REBNY) today released its March 2024 Multi-Family Foundation Plan Application Report. This 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.

See the full report here.

There were 24 filings for project foundations in New York City in March, according to the report. The number of filings decreased from 34 in February, continuing the trend of persistently low application totals that began in June 2022 following the expiration of 421-a.

The 24 project filings in March contain 985 proposed dwelling units. In 2023, there were 285 multi-family foundation plan applications containing 9,909 proposed dwelling units, compared to 45,593 proposed units in 2022. In the past 12 months, there was an average of 24 initial foundation filings per month and 291 filings. This marked a 37% decline in filings from the previous 12-month period. City and State leaders have noted 50,000 new units are needed per year over the next decade to adequately address New York City’s housing supply crisis.

During March, an initial foundation application was filed for only three buildings with more than 100 residential dwelling units. One of these projects is a 21-story tower development at 1 Division Avenue in Williamsburg, which will likely consist of 218 condominiums. Another project is a 14-story mixed-use development at 275 Chestnut Street in Cypress Hills in Brooklyn which will yield 327 overall units and 85 of those will be income-restricted as part of an HPD affordability program. The third project is a 47-story mixed-use skyscraper at 205 Montague Street in Brooklyn Heights which will likely consist of 136 condominiums. These three projects accounted for 681 proposed units, or 69% of the 985 proposed units during this period.

While one more large building filing than February, the March total is still below historical averages and continues a worrisome trend of few large-building production. There were only 30 large building filings in the last 12 months, a 54% decline from the prior 12-month period.

"This data offers clear evidence to State lawmakers on the consequences of failing to support programs that will increase housing production," said REBNY Senior Vice President of Policy Zachary Steinberg. "We will not solve the city's housing crisis unless we put in place programs that will actually boost the amount of housing available to New Yorkers."

Tracking foundation projects supplements REBNY’s quarterly Construction Pipeline Report, which examines new building job application filings submitted to DOB. Since this report tracks multi-family foundation filings rather than new building filings, it provides an additional perspective on the overall state of housing development activity. New building filings generally precede foundation filings by a period of at least several months, or possibly longer if the project is not able to proceed to the construction phase.

For more information about REBNY research reports, visit https://www.rebny.com/research-and-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 visit www.rebny.com.

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