Reducing the Cost of New Housing
Construction in New York City: 2005 Update
Authors: Jerry J. Salama, Michael H. Schill and Jonathan D. Springer
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This report contains the results of an investigation into two related questions: (1) to what extent does the cost of building housing in New York City exceed the cost of construction in other large American cities and (2) what steps can government and the private sector take to reduce the cost of housing development.
The analysis begins with an overview of housing problems facing the city of New York and then compares construction costs in New York to three other major U.S. cities – Chicago, Los Angeles, and Dallas. A wide variety of factors contributing to high construction costs are explored, including the cost of labor, vacant land availability, brownfields, environmental and zoning regulation, land use review, the building code, permit approvals by the Department of Buildings, taxes and fees, insurance premiums, green building and corruption in the insurance industry. Additionally, the report analyzes costs affecting the development of affordable housing, and looks at proposals to guarantee the production of affordable housing through inclusionary zoning programs. The report provides over 90 recommendations to reduce the cost of new housing construction.
This report is an update of a report first published in 1999.