New Report: New York City Takes Bold Step Toward Housing Reform

With “City of Yes for Housing Opportunity” vote, NYC advances pro-housing zoning measures

New York, NY — In late 2024, the New York City Council approved key elements of the “City of Yes for Housing Opportunity” (COYHO) zoning reforms, marking a landmark step toward addressing New York City’s housing crisis. In a new issue brief for the Manhattan Institute, senior fellow Eric Kober evaluates this pivotal shift in the city’s approach to housing policy. While acknowledging ongoing challenges—such as the misguided retention of parking requirements in some areas, which Kober discussed in a recent op-ed for StreetsblogNYC—he also highlights promising estimates that these reforms could enable the construction of an additional 5,500 housing units annually through 2039. He describes these changes as essential to easing the city’s severe housing shortage.

Key insights from the report include:

• Historic reforms: COYHO is NYC’s first major pro-housing zoning reform since the 1980s, introducing citywide amendments to facilitate housing development across diverse neighborhoods.
• Pro-housing progress: Despite City Council modifications that reduced the plan’s scope, the reforms represent a shift toward liberalized zoning rules, particularly in transit-rich areas.
• Remaining gaps: Even with COYHO, housing production is unlikely to meet ambitious goals, such as Mayor Eric Adams' target of 500,000 new housing units over the next decade.

In terms of challenges and next steps, Kober highlights several barriers that could limit COYHO’s full potential, including:

• Off-street parking requirements that increase construction costs and restrict housing growth.
• The need for broader zoning changes and state-level tax incentives to promote mixed-income housing.
• Regulatory hurdles in high-opportunity neighborhoods.

Unlike past efforts that tied new development to strict affordability mandates, COYHO adopts a more flexible, pro-growth approach. Under the Mandatory Inclusionary Housing (MIH) enacted under the de Blasio administration, new housing developments are often financially unfeasible without significant subsidies. The expiration of the 421-a tax incentive in 2022 further slowed development. COYHO, however, emphasizes as-of-right zoning reforms to encourage private-sector investment, allowing market-rate and mixed-income housing to move forward without excessive bureaucratic barriers. This marks a shift toward pragmatic housing policy, recognizing the critical role of private development in addressing the housing shortage.

COYHO’s passage underscores the potential for collaborative leadership in tackling New York City’s housing challenges. Kober stresses the need for continued reforms to meet the city’s growing housing demand and sustain its role as a hub of opportunity.

Click here to read the full report.