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New York City builds the most apartments in a single year since 1965

New York City builds the most apartments in a single year since 1965

Built World

NYC completed 38,682 apartments in 2025, one year after passing its biggest zoning overhaul in decades

March 31st, 2026: Pipeline stays strong into 2026

Overview

New York City finished 38,682 apartments in 2025. That is the most it has built in a single year since 1965, and it comes as apartment construction across the rest of the country has fallen to a 15-year low.

The surge follows two policy changes: a citywide zoning rewrite passed in December 2024 and a new tax break for rental housing. The open question is whether the city can keep this pace long enough to close a housing shortage estimated at 400,000 units.

Why it matters

New York added nearly 39,000 apartments last year, its most since 1965, testing whether zoning reform can dent a 400,000-unit shortage.

Questions about this story

0

can you list the number of appartments build year of the last 10 years

NYC completed between roughly 20,000 and 38,682 apartments annually over the last decade, with 2025's 38,682 units the highest since 1965 and a clear upward surge since 2022.

Why it matters: The trend shows a decade of moderate output followed by a sharp climb, driven first by a 421-a permit rush in 2015, then a lull, then record highs after new tax breaks and rezoning in 2024.

  • 2016–2017: exceeded 20,000 units both years — a delayed wave from a 2015 rush to lock in 421-a tax benefits before changes took effect
  • 2018: ~28,600 units completed (2019 was reported as a 14.2% drop from 2018)
  • 2019: 24,566 units, with more than half in six sub-borough areas of Manhattan, Queens, and Brooklyn
  • 2022: ~26,000 units; 2023: ~28,600 (9.8% increase year-over-year)
  • 2024: ~33,859–34,049 units — largest single-year total since at least 2010 at that point
  • 2025: 38,682 units — the 60-year high, driven by the new 485-x tax break and City of Yes zoning rewrite
  • Note: verified figures for 2020 and 2021 were not available in sources reviewed — those years likely dipped due to COVID construction slowdowns
Room for disagreement
  • The OSC report cites 34,049 completions in 2024 while the arcfe.com source cites 33,859 — a minor discrepancy likely reflecting different counting methodologies (certificate of occupancy dates vs. DCP database cut-offs).
AI-generated with web search — may be wrong. Check the linked sources.

Key Indicators

38,682
Apartments completed in 2025
The highest single-year total for New York City since 1965.
33,859
Apartments completed in 2024
The second straight year completions topped 30,000 units.
~400,000
Estimated housing shortfall
The gap analysts say the city still needs to fill.
82,000
Homes projected from City of Yes
New homes the 2024 zoning rewrite is meant to enable over 15 years.
15-year low
National apartment construction
Building outside New York has slumped, making the city an outlier.

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People Involved

Organizations Involved

Timeline

June 2022 March 2026

5 events Latest: March 31st, 2026 · 3 months ago
Tap a bar to jump to that date
  1. Pipeline stays strong into 2026

    Latest Data

    Developers propose 16,815 units across 281 buildings in the first quarter, with 43,000 units under construction citywide.

  2. City reports most apartments built since 1965

    Milestone

    New York's planning department reports 38,682 completed apartments in 2025, the highest single-year total in 60 years.

  3. City Council adopts City of Yes

    Legislation

    The council passes the citywide zoning rewrite, projected to enable 82,000 homes over 15 years, paired with a $5 billion funding pledge.

  4. State creates 485-x replacement

    Policy

    The state budget establishes 485-x, a new tax break for rental housing, with construction-wage requirements built in.

  5. 421-a tax break expires

    Policy

    New York's main tax incentive for rental housing lapses, and developers warn new rental construction will stall without a replacement.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1961–1965

New York's 1961 zoning overhaul and mid-1960s building rush (1961–1965)

New York rewrote its zoning code in 1961, cutting how much developers could build on many lots. Builders rushed to break ground before the new limits fully applied. Completions peaked around 1965, the record that stood until 2025.

Then

A wave of apartment towers finished in the mid-1960s, then construction fell sharply as the tighter rules took hold.

Now

The 1961 code shaped New York's skyline and density for decades and is often blamed for constraining later housing supply.

Why this matters now

The 1965 peak is the exact benchmark the 2025 total just matched. The earlier surge came from restriction; this one comes from loosening the rules.

December 2018–2019

Minneapolis ends single-family-only zoning (2019)

Minneapolis became the first major U.S. city to abolish zoning that allowed only single-family homes on most residential land. The plan let two- and three-unit buildings rise citywide. Permits for multi-unit housing climbed in the years after.

Then

Multifamily permits rose and construction picked up in previously restricted neighborhoods.

Now

Studies credited the change, alongside broader building, with holding rents nearly flat while other cities saw sharp increases.

Why this matters now

It is the clearest U.S. test of the idea behind City of Yes: allow more housing everywhere, not just in a few zones, and supply responds.

2000s–2010s

Tokyo's permissive national zoning keeps rents flat (2000s–2010s)

Japan sets zoning at the national level with broad building rights, so Tokyo added hundreds of thousands of housing units a year through the 2000s and 2010s. Supply kept up with demand in a metro of over 13 million.

Then

Tokyo consistently permitted far more homes per capita than New York, London, or San Francisco.

Now

Rents in Tokyo stayed roughly flat for two decades even as population grew, a rare outcome among global cities.

Why this matters now

Tokyo is the model advocates cite for what sustained high output looks like. New York's 2025 record is one strong year; the question is whether it can string together many.

Sources

(7)