How Much Housing Will Hochul’s New Deal Build?
Herrick Real Estate partner, Brett Gottlieb, was quoted in The City in an article discussing the "once in a lifetime housing deal" from the NYS Legislature in April 2024.
The article states, "Key provisions offer a tax break for new developments that guarantee some affordable apartments, speed the conversion of obsolete office buildings to residential use, increase the number of apartments that can be built in a single building and let landlords invest in renovating vacant apartments. But each one of those elements contains restrictions and requirements that make their impact highly uncertain."
While there are huge developments here, the article also noted, "So far there are no new estimates of how many new units each one of the changes will produce. And factors the state controls won’t ultimately be the only ones determining what landlords and developers will do."
Brett added, "High interest rates remain the largest hurdle to future development. And construction costs are an enormous part of the cost picture."