Q2 2026 Report Highlights Decline in Large-Scale Residential Construction as 99-Unit Multifamily Filings Remain Elevated

Proposed multifamily units fell 52% from Q1 2026, with quarterly filings totaling less than half the 17,500 units the City says are needed each quarter to build 700,000 new homes over the next decade

New York, NY – The Real Estate Board of New York (REBNY) today released its New Building Construction Pipeline Report for Q2 2026. 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.

The latest report shows that in Q2 2026, developers filed plans for approximately 9.2 million square feet of new construction across 387 new building filings, representing declines of 56% and 33%, respectively, from Q1. Of those 387 filings, 172 were for proposed multiple-dwelling buildings totaling just 8,064 units, down 52% from Q1. That is less than half of the 17,500 units per quarter the City now says are needed to build 700,000 new homes over the next decade and address the housing shortage, according to its latest report.

The decline in filings from Q1 to Q2 comes as New York City’s development pipeline shifts away from projects vested under 421-a and toward projects that must rely on 485-x or other funding programs. Q2 filings show a notable concentration of multifamily projects below the 100-unit threshold, while filings for projects with 100 units or more fell from 25 in Q1 to just 9 in Q2.

“The decline in proposed construction this quarter is a warning sign that New York has not yet created the conditions and incentives needed to maintain the momentum of consistently delivering new homes at the scale required to address the city’s housing supply crisis,” said Basha Gerhards, REBNY Executive Vice President of Public Policy. "As projects vested under 421-a phase out, policymakers need to look at the data and examine whether 485-x is supporting enough new housing development. The volatility of the City’s housing pipeline and the concentration of projects at exactly 99 units, alongside the drop in larger projects, raises serious concerns."

Key findings from the report include:

• 387 new building filings were submitted in Q2 2026, down 33% from Q1 and 9% year over year.

• Proposed projects totaled approximately 9.2 million square feet, down 56% from the previous quarter. Multifamily developments accounted for 89% of proposed construction square footage.

• Developers filed plans for 8,064 proposed multifamily housing units across 172 buildings, a 52% decline from Q1.

• Of the 172 proposed multiple dwelling buildings, 52 contained between 50 and 99 units, totaling 4,270 units.

• 19 buildings were proposed at exactly 99 units, totaling 1,881 units. By comparison, only 9 projects with 100 or more units were filed in Q2, totaling 1,997 units.

• Only 1 project exceeded 300,000 square feet: Extell Development’s approximately 1.65-million-square-foot project at 80 West 67 Street, with 430 proposed units. The project accounted for approximately 18% of all proposed construction square footage during the quarter.

The report also highlights the importance of maintaining a development pipeline capable of delivering housing at a range of scales. A sustained shift toward smaller-scale development could make it increasingly difficult for New York City to meet long-term housing goals and keep pace with demand.

The full report can be accessed here.

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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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Zach Grossman

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(212) 616-5245