The New York City Rent Guidelines Board (of which I am a member) released its 2017 Housing Supply Report. It has a lot of interesting data for housing nerds as well as those of us obsessed with NYC. Here is a taste:
- There are a total of 3,217,521 units of housing.
- 2,184,295 are rental units.
- 848,721 are non-regulated rentals.
- 1,335,574 are regulated rentals in one form or another (rent stabilized, rent controlled etc.)
- 1,033,226 are owner units.
- 116,134 are condos
- 330,679 are coops
- 586,413 are conventional homes.
Some other highlights include,
- Permits for 16,269 new dwelling units were issued in NYC in 2016, a 71.2% decrease over the prior year and the first decrease since 2009.
- There was a 31.3% decrease in the number of co-op or condo units accepted in 2016, to 282 plans containing 8,671 units.
- The number of housing units newly receiving 421-a exemptions decreased 17.8% in 2016, to 4,493.
- The number of housing units newly receiving J-51 abatements and exemptions decreased 22.5% in 2016, to 34,311.
- The number of new housing units completed in 2016 increased 61.9% over the prior year, to 23,247.
- Demolitions were down in 2016, decreasing by 2.0%, to 1,849 buildings.
- City-sponsored residential construction spurred 23,408 new housing starts in FY 2016, 74% of which were rehabilitations.
- The City-owned in rem housing stock declined 70.2% during FY 2016, to 125 units. (4)
For those who do not know the byzantine world of NYC housing policy, 421-a exemptions relate to new construction and J-51 abatements relate to renovation of existing construction. It is interesting to see how policy changes impact housing construction.
Any one year’s figures provide just a snapshot, so if you really want to get a sense of the big picture, you should check out the earlier reports too. For instance, last year’s report stated that there were permits for 56,528 new dwelling units in 2015, an increase of 176% from 2014. This is way more than the long term trend. Permits for new dwelling units never got much higher than the low thirty thousand range but fell to a low as six thousand during the depths of the Great Recession.
When you realize that the 421-a tax abatement was set to expire at the end of 2015, this big jump in permits makes sense as developers filed a ton of permits to take advantage of the program while they could. It will be interesting to see how the new 421-a regime will impact permits for new construction going forward.