From 1999-2009, the city issued 231,228 permits for new housing units, according to a report by the Real Estate Board of New York. Although one shouldn’t give too much weight to projections on a decade that is just starting, the amount of permits issued from 2010-2011 (15,663) point to a 2019 ending with 78,315 units created–the slowest decade for housing construction since the 1960s, Crain’s New York Business reports.
“Trying to project out after two years is risky, but there is nothing on the horizon that suggests a bump up in housing creation,” said Michael Slattery, senior vice president of research for REBNY, adding that high construction costs and the disappearance of tax exemption programs that encourage developers to build, will slow down new housing development. “We have a growing population and we are not providing the housing that is needed,” he said. “Until we see some real housing production we will continue to see rents go up and vacancy decline,” Mr. Slattery said.
It’s a good thing rent is pretty cheap around here, right?