Through the first quarter of 2017, no borough had more planned residential units than Brooklyn, with 1,621 new units entering the pipeline during the first three months of the year. That’s according to a new analysis by The Real Deal of permit applications filed with the city’s Department of Buildings. The city as a whole, however, is well behind 2016’s numbers, which were already down significantly from prior years.
Nearly 4,500 residential units citywide, excluding hotel projects, made their way to the DOB through the first quarter. In 2016 overall, about 22,000 permit applications were filed.
Last year, Brooklyn saw 1,458 new units hitting the pipeline during the same period. The return of the 421a tax abatement could lead to a spike, so it’s possible we could see an even greater uptick in the next few quarters.
Meanwhile, the Bronx saw applications for 1,434 units in Q1, compared to 1,206 in the same period last year. Developers pumped a record $3.3 billion into Bronx real estate in 2016, according to a report from Bronx Borough President Ruben Diaz, Jr. More than half of that money went into residential projects.
Queens saw the biggest drop in new permits filed, with only 550 units, compared to just over 2,000 last year. More than a fifth of the permits filed in the first quarter of this year were for one-, two- and three-family buildings. Staten Island came in dead last, with applications for 304 units, including a rare 72-unit project that’s part of Frank Mcerlean’s 400-apartment development in Rosebank.
Manhattan was also behind on its 2016 count in the first quarter, but it only takes a megaproject or two to change that, or at least a certain kind of megaproject. If 900-foot towers with fewer than 40 units are what developers are after in 2017, don’t expect the pipeline to fill up too much, even with the coveted 421a back for rental projects. It may also take a while for the development site market to pick back up after more than a year without the tax exemption, TRD reported Thursday.
(To view an all time ranking of developers and the number of condo units they’ve developed, click here)