Original op-ed can be found here.

It’s time to fix New York’s dysfunctional construction regulations

There is no better way to rebound from the economic and social damage inflicted by the Covid-19 pandemic than to seize the opportunity to address some of New York City’s most intractable challenges. That includes housing availability, which is constrained by the city’s persistently sluggish rate of housing production.

New York prides itself as a global city that is a beacon for newcomers, yet decades of policy choices—some intentional, others unintended—have limited the city’s ability to add enough housing to keep pace with demand. New York issued fewer housing-unit permits this decade on a per capita basis than nearly every other large city—including San Francisco. This is compounded by production rates in the downstate suburbs that are among the worst in the nation.

One key problem is that the city’s zoning code and planning actions have constrained its ability to grow and adapt. There are few places to build easily, or at all. As-of-right development sites are in short supply, and much of the city is zoned for low density. Sixty percent of all residential lots are zoned for low densities; 12% allow no more than single-family homes. In addition, downzonings, contextual rezonings and the continued expansion of historic districts have slowed development in many high-demand neighborhoods. The result is that fewer than one in four residential lots are potential development sites based solely on the zoning code.

New York’s unique policies and laws present additional problems. Local construction and building codes have failed to keep pace with modern construction methods and innovations, and they drive up construction costs, which are among the highest of major global cities. State law caps a building’s floor-area ratio—which limits the building’s height and density arbitrarily.

Another example is the Scaffold Law, which holds contractors fully liable for all gravity-related workplace injuries, a requirement that is out of step with all other states and that results in higher insurance premiums.

The opaque property-tax system unequally taxes multifamily buildings at a higher rate than comparable owner-occupied housing, making it more difficult to finance new buildings and pushing rents higher to cover the costly tax bills. Instead of reforming the system, costly and inefficient tax breaks have been implemented to stimulate development.

If we can’t make it easier to build projects, we will never be able to solve our region's housing crisis.

Too many New Yorkers struggle to find housing that meets their needs, and the region’s housing shortage has been a primary cause of the affordability crisis. State and city lawmakers should advance policies to make it easier to build throughout the region.

That includes updating the zoning code, setting housing production targets as part of a comprehensive planning process and modernizing outdated building-code provisions. Like other states, New York could enact laws to encourage municipalities to zone for growth, particularly in transit-rich areas. It also should reform the property-tax system, the Scaffold Law, rent regulations and other laws that make it costly to build dense housing.

The current economic crisis might slow construction activity in the near term, but acting now to increase production will set the stage for and catalyze a more competitive and equitable housing market as the economy recovers.

Building more housing for every type of household can help make the New York region more affordable and competitive for generations to come.