Q1 2025 Construction Pipeline Shows Encouraging Uptick in Proposed Residential Development But Citywide Development Still Falls Short of Goals

Ninth straight quarter with total proposed construction square footage below 10 million

New York, NY – The Real Estate Board of New York (REBNY) today released its New Building Construction Pipeline Report for Q1 2025. This report examines new building job application filings submitted to the Department of Buildings, providing historical comparisons and insights into the current state of development in New York City.

In general, the report finds that new construction activity increased in Q1 2025 while remaining below historic levels. Although total proposed construction square footage of 8 million in Q1 2025 is a 26% increase from both the prior quarter and year-over-year, the figure is 36% below the historic average and marks the ninth straight quarter with total proposed construction square footage below 10 million sq/ft.

Multifamily housing activity increased in Q1 2025, rising to the highest level in several years. The quarter saw 6,871 proposed multiple dwelling units spread across 123 buildings, which is a 65% increase in units from the previous quarter and 58% higher than the overall average in units since 2008. Of note, a larger share of multifamily projects in Q1 were concentrated in buildings with fewer than 100 units than has been the case historically. Furthermore, the number of residential units remains significantly short of the 12,500 units per quarter required to meet the Mayor and Governor's ‘moonshot’ goal of 500,000 new housing units over the next decade.

Other notable data findings gathered in this report include:

• The square footage of projects over 300,000 square feet accounted for 14% of the quarterly total, below the historical average since 2008 of 16%.

• Queens had the most new building job application filings of all the boroughs at 112—still a 16% decrease from the same period last year. Meanwhile, Manhattan had the fewest filings with only 14, a 56% increase from the same period last year.

• Brooklyn had the highest number of proposed multifamily housing units in Q1 2025 with 3,080 units spread across 44 properties.

Without greater data transparency from City agencies, REBNY analysts note that it is still too early to attribute results noted in this report to the effectiveness of programs agreed upon by the State legislature in Q2 2024 to spur commercial to residential conversions (467-m) and incentivize new development projects (485-x).

“New development activity ticked up in Q1 2025, providing an important boost to the City’s housing pipeline and overall economy,” said Zachary Steinberg, REBNY Senior Vice President of Policy. “In the face of rising costs and policy uncertainty, it will be critical that State and City policymakers do more to help the housing market continue to rebound in the months and years ahead.”

The full report can be accessed here.

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