September 19, 2025

New York City Sees Surge in Construction Permits

News Summary

New York City is witnessing a significant surge in construction with 945 new building permits filed in the first half of 2025, totaling about 27 million square feet. This boom aims to create 23,446 new residential and hotel units, reflecting an effort to combat ongoing housing challenges. Brooklyn leads in filings, while the overall trend shifts toward smaller developments. Despite these encouraging permits, the construction sector still faces challenges, necessitating policy improvements to meet the ambitious goal of 500,000 new units by 2033.

New York City is experiencing a significant construction boom, with developers filing a total of 945 new building permits in the first half of 2025, representing approximately 27 million square feet of proposed construction. These permits are set to create 23,446 new residential and hotel units, indicating a robust trend towards addressing the city’s ongoing housing challenges.

The data, released in a recent report, highlights a marked increase in permit filings, peaking at 192 in April after an initial 112 in January. The average monthly permits recorded for the first half of 2025 was 157. However, the distribution of these permits reflects disparities across the boroughs, with Brooklyn leading the way at 333 permits, accounting for over one-third of the total filings.

Borough Breakdown and Trends

Manhattan filed only 43 permits, making up 5% of the total submissions, while Brooklyn led not just in total filings but also in the number of units per filing, with 8,456 proposed units. The Bronx and Queens followed, with 7,163 units and 4,773 units, respectively. Notably, two-family residential projects comprised 29% of new residential and hotel permit counts, indicating a shift towards constructing smaller buildings.

Large Projects vs. Smaller Developments

Interestingly, the trend has moved away from large projects typically found in Manhattan. The majority of recent filings, 66%, range between 3,000 to 100,000 square feet, while Manhattan maintained the highest average floor area per permit at 109,208 square feet. In contrast, Brooklyn and The Bronx averaged 38,241 and 33,063 square feet per filing, respectively. The largest single permit in Brooklyn was for 376 Schermerhorn Street, which encompassed 521 units, whereas Manhattan’s largest permit at 2435 Frederick Douglas Boulevard included 282 units.

Encouraging Signs Amid Challenges

The construction sector remains challenged despite these positive developments. A recent report showed that during the second quarter of 2025, new building filings reached 424, reflecting a 28% increase from the first quarter and a substantial 43% jump year-over-year. In January 2025, the 485-x tax incentive program was introduced, which mandates that 20% of units in buildings of up to 99 units be affordable, potentially simplifying construction efforts. Yet, multifamily construction continues to struggle to reach necessary levels, particularly for projects over 100 units, which might be hindered by minimum wage requirements.

Long-Term Goals and Policy Recommendations

Against the backdrop of these developments, New York City continues to grapple with its housing crisis, working towards Mayor Adams’ ambitious goal of 500,000 new units by 2033. The Business Council of New York State has voiced strong sentiments about the frustrations many experience within the permit filing process, which is often likened to ordering a pizza where one can track progress. The overwhelming view calls for improved policies to streamline and incentivize construction, especially for larger projects that may address the critical housing shortage.

As New York City forges ahead, the upward trend in construction permits signals a potential shift in tackling the long-standing housing issues, albeit against a backdrop of operational and policy challenges that still need to be navigated for sustained growth in the city’s housing landscape.

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Additional Resources

Author: STAFF HERE NEW YORK WRITER

NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.

STAFF HERE NEW YORK WRITER

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