High costs blocking rental development

The rising cost of building has made it too expensive for some developers to build rental housing. Rising construction costs, the credit crunch, stubbornly high land prices, and the impending loss of the 421-a developer tax break all make it tough to build. Despite these difficulties, some big rental buildings are going up around the city, including Douglaston Development’s 34-story building at 316 Eleventh Avenue and the Savanna Real Estate Fund’s 90-unit building on the corner of Eighth Avenue and West 31st Street.