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New York City Council approved a rezoning plan on Dec. 5, clearing the way for 82,000 new apartments and $5 billion in infrastructure and housing development over 15 years.
It marks the largest zoning change since 1961.
The City of Yes for Housing Opportunity plan passed by a 31-20 vote amid a citywide vacancy rate of 1.4%. The Regional Plan Association projects New York needs 473,000 additional housing units by 2032 to meet demand.
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Mayor Eric Adams launched the plan after data showed job growth outpacing housing development across New York for four decades. The zoning overhaul allows developers to build more units in districts where households earn 60% or below the Area Median Income, removes parking requirements in targeted neighborhoods and creates two high-density zones.
Under the new rules, property owners can convert vacant offices into apartments more easily.
Churches and campus properties receive expanded rights to construct buildings, while homeowners gain permission to add basement units and backyard cottages in designated areas.
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“It’s going to create a lot more opportunities and hopefully relieve some of the rental burden on tenants. It’s nice to see we’re shifting away from the NIMBY mentality and we’re fostering a pro-development sentiment in the marketplace,” Sean Kelly, partner at Ariel, told Forbes, which originally reported on the topic.
Real estate values stand to climb under the new rules. Ariel said a Harlem development site could grow its buildable square footage by 20%. A Brooklyn property may see a 46% increase in floor area ratio, while an East New York location could expand development potential by 70%.
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The rezoning plan follows Gov. Kathy Hochul’s June housing policy, which extended the 421a tax abatement program’s deadline to 2031 and created tax exemptions (485x and 467m) for residential construction and office conversions.
