New NYC housing to fall by two-thirds this decade

August 30, 2012 09:30AM

The current decade is projected to be one of slowest for New York City residential construction, according to Real Estate Board of New York cited by Crain’s. From 2010 through the end of 2011, the city issued permits for 15,663 new residential units — putting it on pace for 78,315 units this decade.

“Trying to project out after two years is risky, but there is nothing on the horizon that suggests a bump up in housing creation,” said Michael Slattery, senior vice president of research for REBNY. The projection is also a far cry from the 231,228 new housing units permitted for the decade ending in 2009.

Considering the city’s extremely tight vacancy rate and the reported shortage in apartment inventory for sale, that fruits of that construction boom have already been absorbed into the market.

Slattery said that in addition to a struggling market, rising construction costs and the loss of tax exemption programs have stifled developers. As the city’s population growth continues to outpace new construction, Slattery said rents and occupancy rates would continue to rise dramatically.

REBNY’s report was based on U.S. Census data and includes multi-family houses and apartments for rent and for sale. [Crain’s]Adam Fusfeld