Permits & development · 10/22/2026
NYC construction spending set to hit $80 billion this year
The New York Building Congress expects construction spending in New York City to reach $80 billion this year, up $10 billion from a year ago. Residential permits are on pace for more than 31,000 units. The report credits rezonings, office-to-residential conversions and City of Yes, but says the 485x affordable housing tax break needs to be expanded, without saying how.
Reported by The Real Deal · New YorkRead the original ↗
What happened
New York City construction spending is expected to reach $80 billion this year, according to data from the New York Building Congress (NYBC). Crain's reported the figures, and The Real Deal covered them on October 22, 2026. The total is $10 billion more than a year ago and 16 percent higher than the previous three-year period.
Housing makes up a large share of the activity. The city is on track to authorize permits for more than 31,000 housing units by the end of the year. Over each of the last five years, the city averaged about 20,000 unit authorizations. Residential spending is expected to hit $27 billion this year, up nearly $8 billion from a year ago. NYBC CEO Carlo Scissura said permits for new residential units are expected to jump 60 percent this year.
Nonresidential construction is expected to reach $29 billion by year's end, up nearly $7 billion. Three casino projects account for more than $17 billion in planned investment. The rest of the spending is capital investment in public facilities and infrastructure.
The report credits large-scale rezonings, more office-to-residential conversions and the City of Yes reforms. It also says the 485x affordable housing tax break needs to be expanded, but it does not recommend how. "We're still not where we need to be to stem our housing crisis," Scissura said, "but through office-to-residential conversions, new developments, and rezonings, we're making real progress."
Key facts
- Total construction spending
- Expected $80 billion this year, up $10 billion from a year ago
- Residential spending
- Expected $27 billion, up nearly $8 billion
- Nonresidential spending
- Expected $29 billion, up nearly $7 billion
- Casino projects
- Three projects, more than $17 billion in planned investment
- Housing units permitted
- On track for more than 31,000 units this year, versus a five-year average of about 20,000
- Residential permit growth
- Expected to jump 60 percent this year, per NYBC
- Source
- New York Building Congress data, reported by Crain's and The Real Deal
- Date reported
- October 22, 2026 (The Real Deal)
What it means
Landlords
More permitted units could mean more new rental supply competing for tenants over time. Owners near active sites may also deal with more construction nearby.
Tenants and voucher holders
Permits are approvals, not finished apartments, so new units may take time to reach the market. The report does not say how many units will be affordable or open to voucher holders.
Caseworkers
The rise in permitted units may eventually widen the pool of new buildings to search. Clients still need to watch for income-restricted listings, since the material does not break out affordable units.
The highlights
- City is on track to authorize permits for over 31,000 units, vs. a 20,000 average.
- Residential spending is expected to reach $27 billion, up nearly $8 billion.
- Three casino projects account for more than $17 billion in planned investment.
Why it matters Landlords
More permitted units could mean more new rentals, including affordable units, reaching the market in the coming years.
What to do: Watch for changes to the 485x tax break that could affect new affordable units.
Not known yet
- How many of the 31,000-plus units will be affordable or income-restricted
- How the permits split across the five boroughs
- When the permitted units are expected to be finished and ready to rent
- What an expansion of the 485x tax break would look like and who would decide it
Background
In New York City, new buildings need permits from the Department of Buildings (DOB) before work starts. A permit counts toward totals like these, but construction can take years. Rezonings change what can be built on a site, and office-to-residential conversions turn commercial buildings into apartments. Tax incentives such as 485x lower property taxes for new rental buildings that meet affordability and other requirements, so their terms can affect how many affordable units get built.
Summary written by Bulwark from The Real Deal · New York’s reporting. The original story is at therealdeal.com. This is general information, not legal advice.
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