Developers in NYC are adjusting to the 485x tax abatement by limiting projects to 99 units to avoid higher wage requirements that apply at 100 units. Construction costs for larger buildings have risen by 15-25%, leading developers to subdivide properties. Notable projects include Chess Builders’ two 99-unit buildings on the Upper East Side and The Jay Group’s five-building, 450-unit project in Downtown Brooklyn. While labor unions argue that fair wages are feasible, developers prioritize financial viability and lender concerns. Critics worry that 485x is hindering affordable housing expansion by incentivizing smaller buildings with additional infrastructure costs.
Developers in NYC
