City sees highest number of new building permits in years

New York had permits issued for about 27K new housing units last year, with construction plans in the Bronx rising 50%

New York /
Feb.February 03, 2020 11:15 AM
The Bronx saw a particularly strong surge in development, including a tower in Brookfield Properties’ Bankside development (Credit: iStock)

The Bronx saw a particularly strong surge in development, including a tower in Brookfield Properties’ Bankside development (Credit: iStock)

The number of building permits issued in New York City for new homes last year jumped to the highest levels since 2015.

Permits were issued for 26,547 units of housing in 2019, a roughly 27 percent increase from 2018, according to the Wall Street Journal, citing preliminary data from the U.S. Census Bureau. It marked the second-highest total since the last major building boom ended in 2008.

The rise in permits reflects optimism about the long-term future of New York’s economy and the one- to three-year lag between a developer buying a property and getting city approval to build, experts said.

The Bronx saw a particularly strong surge in development, with permits rising 50 percent to hit about 5,500, the most the borough has seen in any year since the mid-1980s. Approvals included a 25-story, 458-unit tower in Mott Haven that is part of Brookfield Properties’ Bankside development.

Some developers think the coming years could see a lag in permits due to caution from landlords over possible rent regulation expansions and the market’s need to absorb a large condo inventory supply.

“We forecast a decline in units in the condo market because of the current oversupply,” housing market consultant Nancy Packes told the Journal. Multifamily development will also fall off, she added, “because of the uncertainty that continues to cloud the market.” [WSJ] — Eddie Small


Related Articles

arrow_forward_ios
Extell president Gary Barnett, 510 East 14th Street and RXR Realty CEO Scott Rechler (Getty, EVGB)
Extell sells stake in Manhattan rentals to RXR Realty
Extell sells stake in Manhattan rentals to RXR Realty
Silverstein Properties’ Larry Silverstein and Brookfield’s Brian Kingston (Getty/Illustration by Kevin Rebong for The Real Deal)
Port Authority taps Silverstein, Brookfield to build 5WTC
Port Authority taps Silverstein, Brookfield to build 5WTC
A two floor unit in The Benson on Madison Ave was the priciest home to go into contract last week. (The Benson)
Best week since 2019 for Manhattan luxury market
Best week since 2019 for Manhattan luxury market
Renderings of 1 Prospect Park West in Brooklyn 
Park Slope condo building poised to set new price record
Park Slope condo building poised to set new price record
37 East 12th Street and 262 Central Park West (Google Maps, iStock)
Luxury report: Patience pays off for buyer of $20M penthouse
Luxury report: Patience pays off for buyer of $20M penthouse
The contract for the 53rd-floor unit was one of 16 signed last week for Manhattan properties asking above $4 million. (111w57)
Condo at 111 West 57th Street tops Manhattan luxury contracts
Condo at 111 West 57th Street tops Manhattan luxury contracts
The penthouse at 3150 South Street in Washington, D.C. (Photos via Redfin; Homevisit)
DC Ritz-Carlton penthouse seeks record-breaking price
DC Ritz-Carlton penthouse seeks record-breaking price
109 East 79th Street and 1010 Park Avenue (Google Maps)
Upper East Side trophy property tops luxury deals — again
Upper East Side trophy property tops luxury deals — again
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...