Boom of tiny NYC apartment buildings due to developers gaming tax-relief program
If the city has such a desperate housing shortage, why do so many new apartment buildings around town seem tiny? The magic number for residential developers in the Big Apple is 99 — the maximum number of units they can build to keep construction and labor costs low and to maximize future profits under a city-state tax-relief program. The Real Estate Board of New York found that new or planned apartment projects in the five boroughs with under 100 units surged to 172 from July 2024 to September 2026, as tallied by the city’s Housing Preservation and Development agency and the Department of Buildings. In comparison, a mere 13 such small-scale projects were recorded from 2008 to 2023. The 23-story Eastline at 1655 First Avenue, which will have 99 units. Google Maps Since 2024, Brooklyn and Queens had 65 and 58 new projects, respectively, with fewer than 100 units, while Manhattan had 17, according to REBNY. Manhattan leasing remains red hot in October A mere 99 units in some buildings is minuscule in light of the city’s need for 700,000 new homes in the next decade. But the reason they’re so popular with builders is simple, say REBNY vice president
