New construction activity increased across New York City in the first quarter of 2025 while remaining below historic levels, the Real Estate Board of New York (REBNY) reported. Total proposed construction square footage of eight million in Q1 2025 represents a 26% increase quarter-over-quarter and year-over-year, yet the figure is 36% below the historic average and marks the ninth straight quarter with total proposed construction square footage below 10 million square feet.

Multifamily activity increased in Q1 to the highest level in several years. The quarter saw 6,871 proposed multiple dwelling units spread across 123 buildings, a 65% increase from Q4 2024 and 58% higher than the overall average since 2008.

However, without greater data transparency from city agencies, REBNY analysts note that it is still too early to attribute these gains to the effectiveness of programs enacted by the State legislature to spur commercial to residential conversions (467-m) and incentivize new development projects (485-x).  

“New development activity ticked up in Q1 2025, providing an important boost to the city’s housing pipeline and overall economy,” said Zachary Steinberg, REBNY SVP of policy. “In the face of rising costs and policy uncertainty, it will be critical that state and city policymakers do more to help the housing market continue to rebound in the months and years ahead.”