Residential starts in NYC were down to 2,000 units in Q1 2016, from nearly 6,500 units at the same time last year.
In terms of space, roughly 2.5M SF of residential projects was approved in Q1 2016, compared to 6.7M SF in the same period last year. The sharp drop-off likely reflects the difficulty of getting mixed-income residential projects off the ground after the 421-a tax credit expired last year, The Real Deal reports.
Last year, the second quarter saw by far the most activity in the residential sector, with 36,000 units and a total of 43.4M SF approved as developers tried to make the most of 421-a before it expired.
The drop-off in Q1 2016 could also reflect changes in how many projects were approved, or the city’s speed in approving them, to some extent. All the players involved have said repeatedly that they’re committed to reinstating or finding a replacement for 421-a. But given the strong passions and controversy still surrounding the tax credit, it remains to be seen just how long it’ll take before that comes to pass. [TRD]
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