New York City is set to bring a massive housing project to the market with affordable units. After weighing multiple proposals, Mayor Eric Adams finally found common ground, striking an agreement with Related Companies to include a total of 4,000 new homes for phase two of the Hudson Yards West project, with that portion expected to cost $12 billion.
What was holding up a deal appeared to be the lack of affordable units, as a previous proposal called for 420. However, NYC's new deal with Related increases that number to at least 625. Also, an additional 139 units are located nearby and will be reserved under the permanent affordable category, according to Adams' office.
In addition to housing, the second portion of the development will include a school, a daycare facility, and 6.6 acres of public space. The first phase, which is currently under construction, is headlined by a casino resort, green space, and more housing. Hudson Yard West, in total, is projected to cost $32 billion, which makes it "the largest real estate development in U.S. history," according to a statement from Adams. The project is designed to redevelop a rail yard site.
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The Hudson Yards project comes amid plans for other significant developments in the city, particularly with office-to-residential conversions, aiming to address the city's housing crisis. This includes the site at 5 Times Square, which will transform from a 38-story skyscraper into 1,050 studio apartments and 200 one-bedroom units. Up to 313 units will be permanently designated as affordable. One of the largest office-to-residential conversions in the city is the project at 219 and 235 East 42nd Street in Midtown East, which previously served as the former headquarters of Pfizer. Joint venture partners, Metro Loft Management and David Werner Real Estate Investments, are planning to develop the vacant site into 1,602 luxury apartments, with 25 percent of the units set aside for affordable housing.
“When we came into office, we set an ambitious goal of building 500,000 new homes over the coming decade," Adams said.
"We said our city could not afford to kick the can down the road any longer and promised to put forward real solutions to solve our generational housing crisis and keep families in the five boroughs. Three years later, we shattered affordable housing records year after year, passed generational zoning changes to create tens of thousands of new homes, and won a long-overdue housing deal from Albany."
It's unclear when exactly construction for phase two of Hudson Yards West will begin.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
