Proposed new construction in New York City is down both quarter-over-quarter and year-over-year, according to a new building construction pipeline report from the Real Estate Board of New York, Crain’s New York reported.
During the second quarter, 387 new building applications were filed, which marked a 33% decrease from the first quarter when there were 577 filings, and a 9% decrease year over year.
Moreover, this was the fewest filings recorded since Q1 of 2025 and was 32% below the historical average since 2008.
Although the report covers all types of construction, it largely focuses on multifamily developments since that category accounted for 89% of the proposed construction square footage in the second quarter.
“The decline in proposed construction this quarter is a warning sign that New York has not yet created the conditions and incentives needed to maintain the momentum of consistently delivering new homes at the scale required to address the city’s housing supply crisis,” said Basha Gerhards, executive vice president of public policy, in a statement.
“As projects vested under 421-a phase out, policymakers need to look at the data and examine whether 485-x is supporting enough new housing development. The volatility of the City’s housing pipeline and the concentration of projects at exactly 99 units, alongside the drop in larger projects, raises serious concerns.”
Unsurprisingly, the total construction square footage proposed was also down this quarter.
During the second quarter, the report found that 9.2 million square feet was slated to be built, a 56% dip from the previous quarter and 27% lower than the historical quarterly average since 2008.
Prior to this quarter, this measurement had surpassed 10 million square feet in three consecutive quarters.
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