New York City will need to construct 700,000 new housing units over the next decade to meet projected demand, according to a draft report from the Department of Housing Preservation and Development (HPD). This figure comes as the city grapples with an immediate shortage of 290,000 units and an apartment vacancy rate of just 1.4 percent. The report, mandated by a 2023 City Council law, represents the first comprehensive assessment of the city's long-term housing needs.
The immediate need for 290,000 units aims to alleviate current shortages. An additional 240,000 units are projected to be necessary to accommodate population growth over the next 10 years. The report further estimates an extra 170,000 units will be required to address "future need," bringing the total to 700,000.
This assessment does not account for the tens of thousands of vacant rent-stabilized apartments or over 6,200 empty public housing units managed by the New York City Housing Authority (NYCHA). The "Fair Housing Growth Strategy" report identifies "decades of underproduction" as the primary driver of the current housing shortage, noting that most neighborhoods have added fewer than 240 units in the last 15 years.
The Real Estate Board of New York (REBNY) responded to the report by emphasizing the need for increased housing production to combat the affordability crisis. REBNY President James Whelan stated that if the city is serious about building 700,000 homes, policymakers must address barriers to construction. He suggested reforms to the 485-x property tax incentive, which he argued leads to smaller developments due to its mandate for union labor on buildings exceeding 100 units. Whelan also proposed returning vacant rent-regulated units to market rate.
According to a state Department of Housing and Community Renewal report, vacancies in rent-stabilized apartments rose by 8,000 units in 2025. Landlords of these units face financial strain, with operating costs increasing by an average of 5.3% this year, and insurance costs for affordable housing jumping 10.5%. A rent freeze implemented by the Rent Guidelines Board in June has further complicated the situation for landlords.
Leila Borzog, Deputy Mayor of Housing, acknowledged concerns about unnecessary vacancies but cautioned against simply raising rents as a solution. She indicated that the administration is pursuing "nuanced policy solutions." Earlier this year, Mayor Zohran Mamdani announced a property insurance program for affordable housing designed to reduce costs for landlords. City Hall aims for this program to issue new policies for 20,000 homes next year and 100,000 by 2030, though specific details have not yet been released.
To date, the Mamdani administration has reported preserving 4,951 affordable housing units and an additional 908 public housing units through NYCHA's PACT program, according to HPD.