REBNY ISSUES NEW REPORT ON THE STATE OF HOUSING PRODUCTION IN NEW YORK CITY

A new report by the Real Estate Board of New York shows housing production in the Big Apple is failing to meet the goal of 500K new units by 2034

The report is the only ongoing analysis of New York City’s residential real estate development pipeline and the incentive programs designed to support residential development

NEW YORK (December 23, 2025)--A new report issued by the Real Estate Board of New York (REBNY) finds that New York City is falling behind its goal of producing 500,000 new units of housing by 2034. REBNY’s New Housing Development Pipeline Report provides an in-depth analysis of housing permit data from the New York City Department of Buildings (DOB) as well as a preliminary look at the utilization of various development initiatives and incentives, such as City of Yes, 485-x, and 467-m from Q1 2024 through Q3 2025.

The report notes that just 66,162 units have been completed since Q1 2024, a mere 13 percent of the 500,000-unit goal. Reaching 500,000 new housing units by 2034 would require the production of 12,500 units per quarter from the start of 2024. At the current pace, an average of 9,452 new units are being completed per quarter. To fill this enormous gap, new housing production would have to reach 13,147 units per quarter through 2034, a roughly 39 percent increase.

Based on that analysis, New York City now faces a 433,838-unit housing gap, a daunting task given the state of the housing development pipeline. Even homes that do get built are taking longer than before – projects with ten or more units now take at least four years to complete.

The full report can be downloaded here.

“The current tools for housing production are not adequate to meet the needs of New York City, and without the creation of significant new incentive programs and comprehensive rezonings there is no way we will meet our goal to build 500,000 new homes by 2034,” said James Whelan, President of the Real Estate Board of New York. “This city needs a much more aggressive set of proposals to drive new housing production, lower costs and deliver a New York City that works for everyone. Our industry is ready to work with our leaders in City Hall and Albany to do just that.”

Other data in the report includes an analysis of the Affordable Neighborhoods for New Yorkers Tax Incentive program, also known as 485-x. The report finds the program, which was created by the State Legislature in 2024 to replace the 421-a program, accounts for just three percent of all units either in pre-development or under construction in the five boroughs.

The report also shows challenges based on projects in pre-development. While 47,124 units are currently in pre-development, roughly a third of those–14,419–pre-filed over five years ago and are unlikely to move forward with construction. The number of projects in the pre-development stage for more than five years has increased by an average of more than seven percent each quarter from Q1 2024 through Q3 2025, representing thousands of potential units that will likely, never be built.

REBNY’s report also highlights the success of the real estate industry in advocating for the creation of new homes in the five boroughs. There would be at least 38 percent fewer units in the pipeline had the industry not successfully advocated for the 421-a deadline extension or for the 467m program, which allows for the conversion of commercial space into housing with permanently affordable units, according to data compiled in the report.

According to the data, Brooklyn had 29,361 units under construction across the city at the end of Q3 2025 (39 percent of the total across all boroughs), followed by Manhattan with 15,767 units (21 percent), Queens with 14,883 units (20 percent), the Bronx with 13,664 units (18 percent) and Staten Island with 1,122 units (two percent).

Of the total completed housing units across New York City since the start of 2024, REBNY’s report finds that Brooklyn leads the way with 26,563 (40 percent of the total across all boroughs). This is followed by Queens with 16,767 units (25 percent), the Bronx with 13,456 units (21 percent), Manhattan with 8,039 units (12 percent) and Staten Island with 1,229 units (two percent).

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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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