February 6, 2017
Developers took out permits to build just 24,757 New York City apartments in 2016 — that’s less than half the 65,484 apartments that developers took out permits to build in 2015.
Developers in New York lost 421-a, a giant property tax break that encouraged new housing development. Developers rushed to start projects before the tax break expired, causing a sudden surge in multifamily permitting throughout the New York metro area in 2015, according to Axiometrics. The year before, developers took out permits to build 27,923 new apartments.
Supporters of 421-a, who want to renew the tax break, suggest that the small number of building permits in 2016 shows the need for the tax break. Also, some of the developers who took out permits in 2016 could be betting their projects would be included in a renewed tax break.
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