New York City, despite its reputation for towering skyscrapers and dense living, surprisingly builds less housing per resident than many other major US cities. This article delves into the data, comparing NYC’s housing production to that of peer cities and exploring the reasons behind this unexpected trend.
NYC’s Housing Production Lags Behind
From 2010 to 2019, NYC issued building permits for just 25 housing units per 1,000 residents. This pales in comparison to cities like Seattle (127 units) and Austin (123 units). Even dense cities facing similar geographical constraints, such as Washington D.C. (71 units), Boston (46 units), and San Francisco (41 units), outpaced NYC in housing production. This lag is not just in permitting; NYC also falls behind in net housing unit growth, ranking 20th among peer cities between 2010 and 2017.
Uneven Growth Within the City
NYC’s housing growth is concentrated in a few neighborhoods. A mere 10 of the city’s 59 community districts accounted for almost half of all new housing permits issued since 2010. Rezoning efforts in the early 2000s spurred development in areas like Downtown Brooklyn, Williamsburg/Greenpoint, Long Island City, and Astoria. Conversely, many other neighborhoods, particularly in southern Brooklyn and eastern Queens, experienced extremely low housing production rates, even lower than Detroit in some cases.
Suburban Sprawl and Stagnation
The housing shortage extends beyond the city limits. Suburban areas like Westchester, Rockland, Nassau, and Suffolk counties have some of the lowest housing production rates nationwide. They significantly trail suburbs in New Jersey, Connecticut, and other major metropolitan regions. This regional underproduction exacerbates affordability issues and limits housing options for residents across the New York metropolitan area.
Factors Contributing to Low Housing Production
Several factors contribute to NYC’s lagging housing production:
- Limited Development Sites: Zoning regulations restrict density and limit the availability of land for new construction.
- High Development Costs: Land scarcity, complex regulations, and high labor and material costs make building in NYC expensive.
- Distortionary Property Taxes: High property taxes on multifamily buildings necessitate tax incentives that inflate land prices and distort market signals.
Conclusion: A Call for Change
New York City’s housing production falls short of its needs and lags behind other major cities. Addressing this issue requires a comprehensive approach involving citywide planning, zoning reform, building code modernization, state-level legislative action, and property tax reform. These changes are crucial to ensuring a more affordable and equitable housing market for all New Yorkers.
