DOB new building resi units fall in May despite late month surge, but conversions rise

Last month the number of residential units developers filed new building plans for in New York City declined slightly compared with the prior two months, but the number of units filed in conversions rose to its highest level in seven months. Real estate investors are closely watching the development filings to see the reaction to the new 485x tax incentive signed into law in late April.

The number of new building residential units was down despite an increase in the volume and size of deals in the second half of May compared with the first half. In the second part of the month, builders filed 20 plans with a total of 623 units, compared with 15 plans and 233 residential units.

Below are the ten largest DOB filings last month.

Overall, the number of new building plans rose from 33 in April to 35 in May, but the number of residential units in new buildings projects is the lowest since November 2023. 

The largest new building residential projects filed last month was affordable housing developer L+M Development Partners, which submitted a new building construction project for a 328-unit, 356,813 square-foot residential (R-2) building at 1225 Gerard Avenue in Concourse, Bronx.

As for conversions, the number of plans rose last month as did the number of residential units. The number of residential units is the largest since September 2023. )The spike in conversions in October and November 2022 includes 25 Water Street with 1,263 units and 49 Broad Street with 571 units.)

The largest conversion plan filed last month was Sunlight Development’s 70-unit project at 95 Madison Avenue, which the firm bought for $65 million out of bankruptcy.