Small-Building Pipeline Surges, Yet NYC Multifamily Development Lags

New York City saw 728 new building filings in the fourth quarter of 2023, a 48% increase over the historical average, according to the The Real Estate Board of New York (REBNY) New Building Construction Pipeline Report for Q4 2023.

However, REBNY said the increase was driven by a massive spike in activity for small buildings. There were 568 filings for buildings with one to three proposed units, mainly on Staten Island, the most in any quarter dating back to 2008.

Conversely, plans for large multifamily projects remained at historic lows. There were just nine filings for buildings with 100 or more proposed units, marking the fourth straight quarter in which there were 10 or fewer such filings. The number of proposed dwelling units was 16% below the historical average.

“This data makes clear that New York City is not building the kind of multifamily rental housing needed to address our worsening supply crisis,” said Zachary Steinberg, REBNY SVP of policy. “Without policies in place to spur greater rental housing construction, one cannot expect this problem to fix itself. Elected officials in Albany must take action to create new housing that will support our housing market and broader economy.”

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