**NYC Construction Pipeline Grows in Early 2025 but Remains Below Historic Levels**
New York City’s construction activity saw a notable uptick in the first quarter of 2025, according to the Real Estate Board of New York (REBNY). The city recorded eight million square feet of proposed construction during the quarter—a 26% increase compared to both the previous quarter and the same period last year. Despite this growth, the figure remains 36% below the city’s historic average, marking the ninth consecutive quarter where proposed construction failed to reach 10 million square feet.
One of the most significant areas of growth was in multifamily housing. The first quarter registered 6,871 proposed multiple dwelling units across 123 buildings—representing a 65% rise over the fourth quarter of 2024 and a 58% increase compared to the long-term average dating back to 2008.
However, REBNY analysts caution that it is still too early to determine if recently enacted state programs—such as the commercial-to-residential conversion initiative (467-m) and new development incentive (485-x)—are responsible for this growth. A lack of comprehensive data transparency from city agencies makes it difficult to assess the full impact of these legislative changes.
“New development activity ticked up in Q1 2025, providing an important boost to the city’s housing pipeline and overall economy,” said Zachary Steinberg, REBNY’s Senior Vice President of Policy. “In the face of rising costs and policy uncertainty, it will be critical that state and city policymakers do more to help the housing market continue to rebound in the months and years ahead.”
While the construction outlook for New York City shows signs of promise, the continued gap from historical averages underscores the need for supportive policies and streamlined processes to sustain long-term growth in the sector.
