In Midtown South, a promising housing initiative is on the horizon, marked by proposed rezoning across 42 blocks. The focus is on transforming manufacturing zones into residential areas, potentially bringing forth a wave of thousands of new housing units over the next decade, a prospect that could significantly alleviate Manhattan’s housing shortage.
The proposed plan’s volume hinges on the state legislature’s decision regarding the 421a property tax break, which is crucial for making multifamily housing financially viable. Without it, developers warn of feasibility issues. However, the city’s Mandatory Inclusionary Housing program aims to ensure affordability within these new developments anyway.
While the rezoning plan aims to create a vibrant, live-work neighborhood and address the city’s housing needs, it’s important to note that challenges remain, particularly concerning the conversion of older office buildings into housing as, despite potential tax incentives, the complexities of these conversion projects present significant hurdles to address.
The Adams administration estimates significant potential for office space conversion into housing, but specifics regarding the breakdown between ground-up construction and conversions still need to be clarified.
Midtown South’s office market has experienced a shift, with demand from TAMI (technology, advertising media, and information) tenants declining, leading to an oversupply of office space. This context underscores the importance of repurposing these spaces to meet housing needs.
In summary, the solution is simple: convert an abundant supply of unused offices into apartments that the city badly needs. But, as usual, translating the solution into implementation takes a lot (too much?) of work.
