Report: Q2 2023 New York City Construction Pipeline Continues to Trail Historical Average

New building filings increase 7% for the quarter but down 30% year-over-year

NEW YORK, NY –The Real Estate Board of New York (REBNY) today released its Quarterly New Building Construction Pipeline Report for Q2 2023. This report dissects public information on newly proposed building projects to highlight the current development pipeline in New York City. While new building job application filings are up 7% from adjusted Q1 2023 figures, Q2 2023 results are 30% below the number of projects at this time last year and 37% below the overall median and the overall quarterly average since Q1 2008.

Read the full Q2 2023 Construction Pipeline report here.

This report corresponds with REBNY’s Monthly Foundation Permit Report, with both analyses showing a continued drop off in housing production that began in the summer of 2022.

According to data from the NYC Department of Buildings gathered in the Q2 2023 Construction Pipeline report, there were 374 new building filings in Q2 2023 representing approximately six million square feet of proposed construction footage. The proposed square footage is a 46% increase from Q1 2023 but a 41% decrease from Q2 2022. Notably, there have been only 21 new building permits in Manhattan through the first half of the year, the weakest mid-year total since 2010.

Looking specifically at applications in the multi-family sector, there were 3,088 proposed multiple dwelling units listed on job filings in Q2 2023. If completed, these units could either be ownership (condo/co-op) or rental. This represents a 41% increase from the previous quarter and 60% decrease from the same period last year. The number of proposed units in Q2 2023 is 15% lower than the overall median and 29% lower than the average since Q1 2008.

These totals are well behind the pace necessary to add approximately 500,000 new units of rental housing that experts have projected are needed by 2030.

“Despite significant demand for rental units, fewer and fewer homes are being built because significant housing production tools are not in place,” said REBNY President James Whelan. “By not keeping up with new housing production, New York City’s cost of living grows more rapidly, and our economic recovery stands on less stable ground.”

As noted in REBNY’s last Foundation Permit Report, fewer than 30 new multi-family foundations filings were made citywide per month during the first five months of 2023, compared to an average of 83 filings per month during the first five months of 2022. There were just 11 new building foundation filings of 100 residential dwelling units or more through May. November 2022 was the last month with more than five large building filings.

“If we are to truly address the housing crisis and reinvigorate New York’s ongoing economic recovery, we need to place significant focus on generating more accessible residential developments that can meet the demands of the city’s continuously growing housing needs,” said Gary LaBarbera, President of the Building and Construction Trades Council of Greater New York. “Not only will these projects help fill these gaps, but they must create good paying, family sustaining careers for hard working New Yorkers that will enable them to reinvest in their communities and bolster our economy. Solutions to these challenges can be found, and we look forward to continuing our collaboration with elected officials and other key stakeholders to identify ways to fix this cog in housing production and provide our tradesmen and tradeswomen more opportunities to pursue the middle class.”

“A healthy development pipeline creates good-paying construction and building jobs that are essential for New York’s broader economy,” said Carlo Scissura, President & CEO of the New York Building Congress. “The decline in new building filings over the last year has been extremely disappointing and we hope state lawmakers build consensus and implement tools that can help the pace of development pick back up.”

"New York desperately needs a more robust building development pipeline that will spur a major expansion of our housing inventory and create important, well-paid construction trade jobs,” said Elizabeth Crowley, President & CEO of the Building Trades Employers' Association. "We look forward to working with our government colleagues and other stakeholders to arrive at public policy solutions that accelerate the pace of new housing, provide meaningful employment, and ensure the kind of recovery New Yorkers need and deserve."

For more information about REBNY research reports, 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.

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