Total and Large Multi-Family Building Foundation Filings for February Fall Far Below Levels Required to Address Housing Shortage

Only two filings with more than 100 residential units or more were filed in February

Trend of persistently low filings has continued since the expiration of 421-a in June 2022

NEW YORK, NY– The Real Estate Board of New York (REBNY) today released its February 2024 Multi-Family Foundation Plan Application Report. This report reviews applications for residential building foundations submitted by developers to the NYC Department of Buildings (DOB), providing a helpful indicator for upcoming housing production.

There were 34 filings for project foundations in New York City in February, according to the report. The number of filings increased from 25 in January but continued the trend of persistently low numbers that began in June 2022 following the expiration of 421-a.

The 34 project filings in February contain just 903 proposed dwelling units. In 2023, there were 285 multi-family foundation plan applications containing 9,909 proposed dwelling units, compared to 45,593 proposed units in 2022. In the past 12 months, there was an average of 25 initial foundation filings per month and 296 filings. This marked a 46% decline in filings from the previous 12-month period. City and State leaders have noted 50,000 new units are needed per year over the next decade to adequately address New York City’s housing supply crisis.

Like January, there were only two filings in February for buildings with more than 100 residential dwelling units. One of these projects is a 12-story development 38-02 126th Lane being built under the city-financed Willets Point master plan in Queens, which will consist of 221 units. The

other project is a 14-story development at 1760 Jerome Avenue in Mt. Hope in the Bronx which will yield 175 units. These two projects accounted for 396 proposed units, or 44% of the 903 proposed units during this period.

The continued lack of large building filings remains concerning as they are key to the production of total housing units, given that large buildings accounted for 55% of the proposed dwelling units in 2023. There were only 30 large building filings in the last 12 months, a 66% decline from the prior 12-month period.

"Housing production in New York City has stagnated to a dismal pace in the absence of sensible development incentives," said REBNY Senior Vice President of Policy Zachary Steinberg. "To make sure New York City can accommodate future economic growth, legislators in Albany must enact data-driven policies to spur the creation of multi-family, mixed income housing.”

Tracking foundation projects supplements REBNY’s quarterly Construction Pipeline Report, which examines new building job application filings submitted to DOB. Since this report tracks multi-family foundation filings rather than new building filings, it provides an additional perspective on the overall state of housing development activity. New building filings generally precede foundation filings by a period of at least several months, or possibly longer if the project is not able to proceed to the construction phase.

For more information about REBNY research reports, visit https://www.rebny.com/research-and-reports/

# # #

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.