New York City Continues to Fall Far Short of Housing Production Goals for 2023, On Track to Produce Under 10,000 New Homes

Two New REBNY Reports Provide Detailed Look at Current and Potential Construction Activity Across New York City

NEW YORK, NY– The Real Estate Board of New York (REBNY) today released two reports that offer a deeper dive into the state of construction in the city generally and multifamily housing in particular: the Q3 Construction Pipeline Report, which examines new building filings, and the September Multi-Family Foundation Plan Application Report, which examines new multifamily foundation plan filings. New building filings precede foundation permit filings by several months or more, so the Construction Pipeline Report serves as a long-term predictor of housing development, while the Foundation Permit Report gives a clearer picture of what is likely to soon begin construction.

Both reports highlight that the current pace of residential development is far below what is needed for the city to meet the 500,000 goal, or 50,000 units a year, over the next decade.

Q3 Construction Pipeline Report

The quarterly Construction Pipeline Report showed 323 new building filings in Q3 2023. This represents a 14% decrease compared to the previous quarter and a 25% decrease compared to the previous year. Those filings represented a total of 6 million square feet of proposed construction in Q3. This was on par compared to the previous quarter and a 14% decrease compared to the previous year.

View the full report here.

September Multi-family Foundation Plan Application Report

In September, there were 20 new foundation plan filings, accounting for 527 units. Only one of these buildings is planned to have 100 or more units. No month since November 2022 has seen more than four large building filing foundation plans.

Through September 2023 there have been 220 projects containing a total of 7,068 units seeking foundation plan approval from the Department of Buildings. This puts the City on track to begin construction on fewer than 10,000 new units by end of this year, which is well belowthe roughly 50,000 units a year that are needed to meet the city’s needs.

View the full report here.

"It is becoming increasingly clear that the current economic environment, combined with the State legislature’s failure to encourage new rental construction, is stifling much-needed housing development in New York City,” said Zachary Steinberg, REBNY Senior Vice President of Policy. “Policymakers need to respond to this challenge urgently and with bold solutions that can deliver the housing, jobs, and development the city needs to thrive."

“The data in this report line up closely with the findings of our recent Construction Outlook report – and are just as distressing,” said New York Building Congress President & CEO Carlo A. Scissura, Esq. “As New York City goes, so goes our state. I don’t know what more proof our elected leaders need to finally start treating this housing crisis with the urgency it merits. We cannot have another session in Albany like the last one where no action is taken to spur development. The can has been kicked to the end of the road… let’s go.”

"At a time when the city is in dire need of affordable housing, New York City needs leadership to unite and answer the call," said Elizabeth Crowley, President and CEO of the Building Trades Employers' Association of New York. "Collectively, builders, owners, labor, and policy makers must work together to develop the incentives needed to build significant housing stock. New housing construction should not only provide more New Yorkers with the ability to live and work here, but also provide good paying careers for construction workers to afford to live here."

“If New York is to continue to build its economy and restore the middle class we must continue to encourage new construction and housing development that will not only help ease New York City’s housing crisis, but also create thousands of good-paying, family sustaining careers for hard working New Yorkers.” said Gary LaBarbera, President of the Building and Construction Trades Council of Greater New York. “We urgently need legislation that leads to growth in building stock and housing production while promoting more access to long-term sustainable income via roles in the unionized construction industry. We remain committed to working with our elected officials and stakeholders to find bold solutions that address these challenges and improve the livelihoods of New Yorkers from all backgrounds and neighborhoods.”

For more information about REBNY research reports, please 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 visit www.rebny.com.

MEDIA CONTACT:

Erin Garrett

egarrett@rebny.com

(212) 616-5248