The Bronx See Less Housing Development In 2007
It looks like the borough’s hot residential growth spurt may finally be cooling off.
Despite record amounts of cash poured into local housing, a new report from the city’s housing and buildings departments shows building permit applications plunged 33% in the Bronx in 2007.
Permits were issued for 3,104 new residential units in the Bronx last year, compared with 4,658 in 2006.
A unit can constitute one apartment in a 20-unit building, for example.
Development experts say the decline may be particularly significant because Brooklyn, Queens and the city as a whole saw record increases in new permits issued in 2007.
Christopher Jones, of the Regional Plan Association, cautioned that a few big projects can throw the numbers off, but suggested that the decline in the Bronx is more likely a trend.
With mortgage foreclosures, a slowing housing market and a souring economy, Bronx construction levels may be the first sign of weakness in a city that has largely escaped the national price falloff and slowdown in construction.
“Most people are expecting that the residential building boom is going to start to decline based on what is happening to the housing market,” Jones said. “Given that the Bronx is the poorest of the five boroughs, it might be experiencing some of the problems earlier than the rest of the city.”
Irene Baldwin, executive director of the Association for Neighborhood and Housing Development, hypothesized that since so much citywide development is for luxury units, the Bronx may be getting left behind.
“It could be the Bronx is still the borough where there is still a fair amount of affordable housing, while much of the stuff we’re seeing is luxury housing going up,” Baldwin said.
Another development expert suggested builders may be focused on the section 421a program, which gives them tax exemptions for building multi-family housing in certain areas. There are many more eligible buildings in Queens and Brooklyn than in the Bronx.
Extensive rezoning of commercial and industrial areas into new residential-friendly land also drew developers to Queens and Brooklyn in 2007.
Borough President Adolfo Carrion’s office argues the numbers do not represent a leveling off of local housing development, because there were still a record number of dollars invested last year — more than $925 million, compared with $713 million in 2006 and $237 million in 2002.
Carrion’s office said that more “substantial structures” were built in 2007 — including multi-family apartment buildings on smaller parcels of land and more elevator buildings, which cost more to build. The investment dollars also went into significant renovations of buildings.
“It was a great year for housing in the Bronx — the fourth largest year in decades,” said Carrion. “That’s something to take notice.”
He noted, “While actual address numbers are slightly down, investment in residential properties has increased tremendously, and the number of housing units has increased significantly over a period going back to 2002.”
Before 2001, the Bronx had not issued permits for more than 2,000 new units since 1971, said Seth Donlin, spokesman for the city Department of Housing Preservation and Development.
SOURCE: NYDailyNews.com
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