New Report: New York State Legislators Could Boost Housing Supply

NEW YORK, NY – While many states concerned about housing shortages limit the extent to which their localities can prevent housing construction within their borders, New York State has long allowed local governments to control land-use regulations. Since Governor Kathy Hochul's 2023 "Housing Compact"—which intended to set growth targets for suburban municipalities—found no support in the state legislature, state government has largely avoided addressing local zoning as a solution to the severe housing supply shortfall downstate.

Yet this past August, Assemblymember Tony Simone and a group of progressive legislators proposed "State of Yes," an ambitious package of 32 bills that pair zoning and permitting reforms previously considered out of reach in Albany with new measures aimed at private landlords. 

In a new Manhattan Institute report, senior fellow Eric Kober examines the package and finds that State of Yes contains promising bills to improve New York's housing supply. Moreover, Kober argues that newly reelected Governor Hochul should take advantage of 2027 as a non-election year to advance pro-growth reform that often stalls during campaign seasons. But Kober also emphasizes that "pro-development" policies ought not be accompanied by "pro-tenant" provisions as Albany often seems inclined to do, since more housing is an inherently desirable goal that need not be pursued through a political tradeoff. 

Kober recommends that legislators make three State of Yes bills a priority in 2027: 

1. The Sustainable Affordable Housing and Sprawl Prevention Act, which would build on the 2026 environmental review reforms by raising the size thresholds for exempt housing projects. 
2. The Exclusionary Zoning Reform bill, which would set statewide minimum zoning standards allowing small multifamily buildings on most lots.
3. The State Affordable Housing Zoning Board of Appeals bill, which would leave localities outside New York City few grounds to block affordable housing while preserving their ability to address genuine health and safety concerns. 

The larger question, Kober concludes, is whether Albany is finally willing to ask the suburbs to contribute to solving a housing shortage that New York City has already moved to address on its own. State of Yes suggests that at least some legislators are ready to confront local control over land use. Whether the governor and legislative majorities follow, and whether they do so without conditioning reform on new burdens for landlords, will be the test of the 2027 legislative session. 

Click here to read the full report.