Entertainment news and discussion on TalkFuse.
Boom of tiny NYC apartment buildings due to developers gaming tax-relief program
New York City has seen a sharp rise in apartment projects with fewer than 100 homes, as developers structure buildings to qualify for more favourable tax relief. The trend matters because the city needs far more housing, while the rules may encourage smaller developments instead of larger projects in areas that can support greater density.
The Real Estate Board of New York counted 172 new or planned projects with under 100 units between July 2024 and September 2026, compared with 13 recorded from 2008 to 2023. Brooklyn had 65 such projects and Queens 58; some larger developments have been split across connected buildings or multiple addresses, each capped at 99 apartments. Under the 485-x programme, projects below 100 units generally need 20% affordable homes and face no construction-wage requirement, while larger schemes must meet stricter affordability and pay rules.
In short
- Small New York apartment projects have surged under the 485-x tax rules.
- Developers can keep buildings below 100 units to qualify for lighter requirements.
- The city needs 700,000 new homes over the next decade.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The rise in smaller projects may help add homes more quickly and make development feasible across a wider range of sites. A tax-relief scheme with simpler requirements for buildings under 100 homes can encourage investment while still requiring a share of affordable housing, and not every neighbourhood or site can support a large complex.
The case against
If developers are dividing projects to stay below the 100-home threshold, the rules may be rewarding a legal structure rather than the housing a site could provide. That could mean fewer homes overall in areas suited to greater density, while allowing projects to avoid the larger schemes’ stricter affordability and construction-wage requirements.
Entertainment Gaming Software Technology World