State Comptroller Report Examines NYC’s Housing Production and Future Growth Amid Changing Policy Dynamics
New York City’s efforts to address its housing shortage have led to a growth in supply that outpaced that of the state, but a drop in permits suggests slower growth may be on the horizon, according to a report released today by State Comptroller Thomas P. DiNapoli. The report examines where new housing has been concentrated since 2010 and implications for growth in other areas under the “City of Yes” initiative and the creation of the 485-x affordable housing program.
“New York City has added housing at a faster pace over the last several years, and it is still not enough to meet demand,” DiNapoli said. “Key to the city’s success will be a close understanding of the type of housing being created and where zoning initiatives and affordable housing incentives have succeeded, so that government, developers and community stakeholders can effectively address the city’s pressing need for housing over the coming decade.”
The city gained 307,000 housing units from 2010 through 2023, an increase of 9%, bringing the total to over 3.7 million. Brooklyn gained the most over that time, with 11.4% growth to reach 1.1 million units or 30% of housing citywide. Around the city, housing increases were often concentrated in specific areas like northeastern Brooklyn (Williamsburg, Greenpoint), Manhattan’s Midtown West, and along the East River in Queens. The neighborhoods with the greatest increase in housing over those 14 years were in Queens (Long Island City, Sunnyside and Woodside) with nearly 42% more housing units and Brooklyn (Downtown, Fort Greene) with over 38% more units.
While growth in the city was faster than statewide growth (6.5%) and metropolitan area growth (7.4%), it lagged the nation’s overall 10.3% rate of housing growth.
Growth spiked in 2023, with 30,170 units added citywide, the most since 2010. Nearly 93% of 2023’s growth was from new construction, with the largest share in new buildings with 100 or more units. The Bronx had the greatest share of 2023’s net new housing (35%), driven by new construction that was likely a combination of rezoning, available land on the Harlem River and special districts, just above Brooklyn’s 34%. The Bronx’s share of the city’s affordable housing also grew from an annual average of 33% (2016-2019) to nearly 44% (2020-2024).
Based on recent data from the Department of City Planning, housing continued to grow at a fast pace in 2024, with a new record of 37,690 net new units to reach 3.76 million total housing units, a 1% increase over 2023. But the recent acceleration in new housing — especially the rapid growth of affordable housing in the Bronx — reflects, in part, a surge in permits before the 2022 expiration of the 421-a tax abatement program for affordable housing construction.
Although the pipeline for housing construction remains strong, it is likely to ebb from the recent high. Applications for abatements and construction permits fell steeply in 2023, below pre-pandemic levels, even as more construction projects were being completed. Brooklyn continued to lead the boroughs in number of permitted housing units as of 2024, partially due to rezoning initiatives that may have also influenced activity in the Bronx.
As of last year, there were 51,714 units of housing approved and awaiting permits with 98,502 more permitted for construction. This is equivalent to nearly 3% of the current housing stock and could signal a few more years of strong annual growth at or near 0.75%, which is a greater rate of growth than the “City of Yes” rezoning plan that calls for 80,000 units over 15 years. Growth in housing remains uncertain beyond the next few years, however, due to the decline in filings, and the risk of federal funding cuts.
Much of the upcoming development is expected to take place in Brooklyn, given its high number of permits compared to other boroughs. However, rezoning initiatives and broader development choices allowed by the “City of Yes” may shift development toward newly upzoned areas of the city and encourage a greater variety of development in a larger number of neighborhoods, as contextualized development is encouraged.
DiNapoli’s report encourages city and state leaders to examine the city’s housing database closely to assess whether housing units are being added to the neighborhoods that most need them and to review changes in neighborhoods after rezoning. As part of that review, greater information is needed on just how much of the housing being added is affordable to low- and moderate-income households, especially as federal changes may jeopardize assistance to families.
