Zoning Reforms NYC Needs to Build More Affordable Housing

New York City is in the midst of a housing crisis, and zoning laws play a crucial role in shaping how (and where) we build new homes. If the city wants to create more affordable housing, it needs to rethink outdated zoning rules that limit density, drive up construction costs, and make it harder to build where housing is needed most.

Here are the most effective zoning changes NYC can implement to unlock more affordable housing:

1. Upzone in Key Areas

New York needs to allow taller, denser residential buildings, especially near subway stations and high-capacity transit lines. Expanding Transit-Oriented Development (TOD) policies can encourage the construction of more multi-family housing where people already commute. Neighborhoods with good infrastructure should be prioritized for increased height and density allowances.

2. Eliminate Parking Requirements

NYC still requires many new buildings to include a minimum number of parking spaces, even in areas well-served by public transit. This adds unnecessary costs—parking garages can cost $50,000+ per space to build—and takes up space that could be used for more apartments. Removing or reducing these mandates would lower construction costs and make affordable housing projects more feasible.

3. Strengthen Mandatory Inclusionary Housing (MIH)

NYC’s Mandatory Inclusionary Housing (MIH) program requires developers to include a certain percentage of affordable units when building in upzoned areas. However, the program could be more ambitious. Increasing the required set-asides for affordable housing while offering developers more flexibility (like increased Floor Area Ratio or tax incentives) would lead to more mixed-income developments citywide.

4. Legalize More Housing Types

NYC’s zoning laws often prevent homeowners from adding Accessory Dwelling Units (ADUs), like basement apartments or backyard cottages. Legalizing ADUs citywide would allow more affordable, small-scale housing options. Additionally, rezoning low-density areas—like parts of Queens and Staten Island—to permit small apartment buildings instead of just single-family homes would significantly boost housing supply.

5. Convert Underutilized Commercial & Industrial Spaces

Many office buildings, hotels, and industrial spaces sit underused or vacant, yet zoning restrictions often prevent them from being converted into housing. Rezoning these areas to allow residential development—especially near transit corridors—could create thousands of new affordable homes.

6. Reform the 12 FAR Cap

New York State law currently limits the Floor Area Ratio (FAR) for residential buildings to 12.0, capping how dense housing developments can be. This outdated rule prevents the construction of more high-rise apartment buildings in areas where they make sense. Lifting or modifying this restriction would allow for greater density and more affordable housing units.

7. Streamline the Approval Process

Many housing projects in NYC face years of delays due to a slow and unpredictable approval process. The city should establish more as-of-right zoning rules for affordable housing, allowing projects that meet clear criteria to move forward without lengthy discretionary reviews. Reducing community board veto power over projects that meet affordability goals would also speed up much-needed housing production.

8. Prioritize Affordable Housing on City-Owned Land

NYC owns a large amount of underutilized land, including vacant lots and underdeveloped sites. Prioritizing these properties for 100% affordable housing projects—with long-term affordability guarantees—would be a game-changer. The city could also partner with non-profits and mission-driven developers to ensure that new housing remains accessible to low- and middle-income New Yorkers.

Conclusion

NYC’s housing crisis isn’t going away on its own. The city needs bold zoning reforms to allow more housing—especially affordable housing—where it’s needed most. By updating outdated rules, streamlining approvals, and making better use of available land, NYC can ensure that more people have access to safe, affordable places to live.

The time for action is now. Will the city rise to the challenge?

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