Post 421a – A New Normal
Now that the tax abatement benefits have expired, there has been a notable decline in total new unit construction. A reported 20,144 new units were authorized for construction by the New York City Department of Buildings between July 1, 2015 and June 30, 2016, dropping from 52,618 units the same period the prior year. Despite the decline, industry analysts advise that the market is actually successfully shifting back to being within the annual average, and is just recuperating from its boost before the 421a program expired.
Now in a post 421a environment, New York City may be reigning in a new king. Kings County, had steadily maintained the title of being the most popular borough for four consecutive years, reportedly capturing a 46% market share in 2015 and 37% in 2014 for residential unit permits. Within the first six months after the program expired, Bronx County is now championing to take the lead, capturing 32% market share for all unit permits. While the tax benefits may have ended, this setting the stage for other market opportunities. It will be interesting to watch its progress going forward.
Learn more about this growing trend. goo.gl/ydoY7T