Tight housing market boosts New York office conversions (opens original article in a new tab)

New York's tight housing market is driving real estate firms to convert office buildings into residential complexes, leveraging tax incentives and addressing housing shortages with a mix of luxury and affordable apartments.

• New York real estate firms are converting office buildings into apartments to address housing shortages and take advantage of tax incentives for affordable housing.
• The city's high rental costs and low apartment vacancy rates are driving the trend, with over 44 commercial buildings converted into residential units since 2020, adding nearly 18,000 apartments.
• Developers are implementing luxury amenities in converted buildings, with affordable units available at significantly lower rents but requiring lottery-based selection.