According to the Real Estate Board of New York (REBNY), construction activity in New York City has remained low in the third quarter, consistent with the trend over the past year and a half. The Q3 2024 New Building Construction Pipeline Report shows that both new housing and overall construction levels are below historical averages.
In Q3, there were 326 new building filings, which is a 10% increase from Q2 but still a decrease of 5% compared to last year. These numbers are also significantly lower than the historical average since 2008, with filings being down by 43%. The report specifically notes that while there was an uptick in proposed multifamily units from Q2, it is still below historical averages.
Zachary Steinberg, REBNY’s Senior Vice President of Policy stated that having a strong construction pipeline is crucial for reducing cost pressures on tenants and attracting and retaining talented workers. It also supports job creation and generates tax revenue through new development. While there has been some improvement compared to previous quarters, this report highlights how far behind we are from meeting production averages seen historically.
