New multi-family development continues to evaporate as State Legislative session nears conclusion

The Real Estate Board of New York (REBNY) released its April 2023 Multi-Family Foundation Plan Application Report. This monthly 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.

The first four months of 2023 have continued the trend of persistently low foundation activity that began in the second half of 2022 following the expiration of the 421a tax abatement program. According to the report, there were 22 new multi-family foundation filings in April 2023, representing a total of 569 proposed dwelling units. Both figures are lower than March, and April marks the fifth straight month of fewer than 30 filings citywide. By comparison, there was an average of approximately 73 filings per month during the first half of 2022.

There were two filings for a new building with more than 100 residential dwelling units in April, down from three in March and contributing to just seven large new multifamily foundation filings year to date. The two large April projects accounted for 487 proposed units and over 85% of the total proposed units for the month. This was the fifth month in a row with fewer than five large building filings. The projects include 6014 Beach Channel Dr. in Arverne, Queens. The other, much larger project is located on a brownfield site at 12096 Flatlands Ave. in Brooklyn, the initial phase of a 13-building affordable housing project in East New York. The project, built in partnership with the Christian Cultural Center, its neighbor, is expected to have 2,100 residential units leased at income-based rent, as well as a performing arts center, a trade school and retail.

The dearth of large-building filings is significant. Buildings with 100 units or more represent a small percentage of the number of filings but are key to the production of total housing units given that large buildings accounted for 66% of the proposed dwelling units in 2022.

The report comes in the final weeks of the 2023 legislative session after the failure to include new housing supply tools in the recently enacted State budget.

“Month after month, New York City’s housing supply crisis worsens as new development grinds to a halt,” said REBNY Senior Vice President of Policy Zachary Steinberg. “In the next few weeks, the Legislature has the opportunity to tackle this crisis head on by enacting common sense proposals to grow our housing supply. The longer we wait to act to counter this housing supply crisis, the further behind we will fall.”