2024 was a big year for Yimbys.
“Big,” meaning some key housing policies scored wins and that housing was spoken about repeatedly during the presidential race, though the Yimby candidate did not win. “Big” also meant the mayor’s signature housing policy was approved, even after he was indicted on corruption charges.
This newsletter was full of zoning and housing policy stories this year, either to your delight or chagrin, but there were good reasons (aside from my being a huge nerd).
For one, the state approved a number of measures that lawmakers, developers and tenant advocates have been discussing for years. The state budget included a new property tax break to replace 421a, which expired in June 2022, and an extension of the old program’s construction deadline. It also included a version of good cause eviction, with several carveouts.
Doesn’t that all seem like it happened ages ago? I promise it happened this year.
The budget also lifted the state’s cap on residential density in New York City, a proposal that had been stalling out since at least 2015. The change, along with provisions in the City of Yes for Housing Opportunity, means that development sites or neighborhoods can be rezoned to allow for residential space 15 or 18 times larger than a project’s lot. The Adams administration wants to implement these higher floor-area ratios when it rezones Midtown South.
Office-to-residential conversions may be easier thanks to a tax break in the state budget, though some have argued that the benefit’s affordability requirements will deter the industry from using it. City of Yes also expanded the types of office buildings that can be converted, allowing buildings constructed after 1990 to be transformed.
The City Council approved the City of Yes for Housing Opportunity, which eliminated parking requirements in some parts of the city, legalized accessory dwelling units (with restrictions) and created a new density bonus program to replace voluntary inclusionary housing. Even with a $5 billion commitment from City Hall, the vote was close: 31 to 20.
Housing was a key issue during the presidential race, with Vice President Kamala Harris vowing to build 3 million homes in her first term. Trump has not rolled out a housing policy but (like Harris) has said he wants to build on federal land and streamline regulation that delays construction. He has blamed housing costs on migrants, although economists have said they have had minimal impact.
The passage of long-debated policies aimed at increasing housing supply marked a shift in city and state attitudes about how to address New York’s housing crisis. Increasingly, elected officials acknowledge that building housing is the best way to attack the problem.
At the same time, New York is at a political crossroads. Mayor Eric Adams, a favorite of the real estate industry, was indicted on charges that he accepted bribes and fraudulent campaign donations from Turkish officials and businesspeople, and in return, expedited their construction projects.
Adams has made cutting red tape a goal, but the allegations against him and his staff have centered on actions that cross the line between powering through regulatory morass and helping supporters jump the line in exchange for personal benefits.
His right hand, Ingrid Lewis-Martin, faces charges that she helped real estate investors overcome construction snags in exchange for more than $100,000.
Several challengers have lined up to replace Adams. Real estate is a perennial villain in city and state politics. Will the fact that development played a significant role in the criminal charges against Adams and Lewis-Martin mean that candidates will try to distance themselves even more from the industry?
Three mayoral candidates have already pledged to freeze rents for stabilized apartments if elected. But so far it doesn’t seem that rejecting real estate donations outright is in vogue in the way it was in previous races.
Comptroller Brad Lander has vowed to restrict what kind of donations he will accept from the real estate industry, and Assembly member Zohran Mamdani told Politico that he has taken New York Communities for Change’s pledge not to accept contributions from principals of for-profit real estate developers, REITs or corporate PACs.
Sen. Zellnor Myrie, who has positioned himself as the race’s Yimby candidate, and Scott Stringer told Politico they are accepting money from the industry.
The elephant in the room is the re-election of Donald Trump. What will it mean for Democrats in New York, where the Republican gained considerable ground? His 2016 election propelled progressives, which made passage of the 2019 rent laws possible. Progressives in the City Council have already pointed to the passage of the FARE Act, which requires whoever hires a rental broker to pay the commission, as an example of how they can respond.
Meanwhile, Adams has struck a less combative tone when speaking about Trump, telling Fox News that he’s “working with the president and his administration, and not warring with him.” The New York Times, among others, questioned whether that is driven by the possibility of a presidential pardon or the number of New Yorkers who voted for Trump. But Adams also isn’t the only moderate Democrat taking this tact.
Next year, we’ll be watching how pro-housing policies and the Trump administration factor into the City Council and mayoral elections and shape the priorities of state lawmakers.
Programming note: The Daily Dirt will be taking a break from Dec. 25 through Jan. 1. Happy holidays!
Closing Time
Residential: The priciest residential sale Monday was $8 million for a new, 3,400-square-foot condo unit at 35 Hudson Yards. Corcoran Sunshine Marketing’s Richard Hottinger is the listing agent.
Commercial: The largest commercial sale of the day was $5.7 million for 584 Gates Avenue in Bedford-Stuyvesant, a former gas station with 6,300 square feet of lot space.
New to the Market: The highest price for a residential property hitting the market was $4.7 million for a 2,900-square-foot condo unit at Trump World Tower, 845 United Nations Plaza. The apartment last sold in 2005 for $3.6 million. Douglas Elliman has the listing. — Joseph Jungermann