New York City

Commercial Real Estate Advisors

Rezoning NYC: A Balancing Act for Growth and Affordability 

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New York City, a dynamic metropolis constantly in flux, grapples with the challenge of accommodating a growing population while preserving the character of its established neighborhoods. One key tool for navigating this tension is rezoning, the process of altering zoning regulations to dictate what kind of development can occur in a specific area. While rezoning offers potential benefits like increased housing supply and economic growth, it can also raise concerns about displacement, strain on infrastructure, and the erosion of community identity. 

Studies by the NYU Furman Center shed light on the development impact of rezoning. An analysis of rezonings from 2003 to 2007 found that a surprisingly high percentage (86%) of lots were downzoned or subject to minimal changes. However, the remaining 14% of upzoned areas saw a significant net gain of 100 million square feet (more than twice the size of Central Park) of potential development space, highlighting the potential for increased density. This additional density can translate into more housing units, office space, or commercial establishments, catering to the needs of a growing city. 

A crucial goal of recent rezoning initiatives is fostering the creation of more affordable housing units. Mandatory Inclusionary Housing (MIH) programs, for instance, require developers in designated areas to set aside a percentage of units in new developments for below-market rents. An analysis by the Independent Budget Office of New York City found that the East New York rezoning, approved in 2016, was projected to bring in 19,300 new residents, with the potential for a significant number of those units (estimates vary) to be affordable. This offers a glimmer of hope for New Yorkers struggling with the city’s high rents. 

Applying Mandatory Inclusionary Housing, rezoning will open up the area to low- and middle-income New Yorkers by allowing the construction of new mixed-income housing, support job growth and generate new public waterfront access and public open space. (Credits: Capalino) 

Displacement and Community Concerns 

Rezoning can also have unintended consequences, particularly for long-term residents. A 2021 Gotham Gazette piece noted that in some cases, rezoning has coincided with, though not necessarily caused, demographic shifts. For example, while East New York’s overall population dipped slightly after rezoning, the African American population declined by 26.3%, raising concerns about displacement due to rising rents and a changing neighborhood character. This highlights the potential for rezoning to exacerbate existing inequalities and accelerate gentrification, pushing out low-income residents and businesses that define the cultural fabric of a community. 

The impact of rezoning extends beyond housing to encompass the capacity of a neighborhood’s infrastructure to handle a larger population. Increased density can strain existing resources, such as schools, transportation systems, and green spaces. Careful planning is necessary to ensure that rezoning is accompanied by investments in infrastructure improvements and the creation of new amenities to serve the growing community. 

Rezoning — which must be certified before it can enter the land use process — would require greater investments in neighboring public housing complexes, among other changes, to make the effort truly equitable. (Credits: Bebeto Matthews/AP & Curbed New York) 

Maintaining a Sense of Place 

Beyond physical infrastructure, rezoning can also affect the intangible aspects of a neighborhood, its unique character and sense of place. Historic preservation efforts and community-driven design guidelines can help mitigate the risk of rezoning leading to homogenization and the loss of a neighborhood’s soul. Public art installations, designated landmark areas, and the preservation of small businesses can all contribute to maintaining the cultural heritage that residents cherish. 

The success of rezoning hinges on effective community engagement. The City Planning Commission of New York City (CPC) emphasizes the importance of public input throughout the land use review process. This allows residents to voice their concerns, participate in shaping the future of their neighborhoods, and ensure that rezoning plans address their needs. Open communication and transparent planning are crucial for mitigating potential displacement and fostering a sense of ownership among residents. 

Boosters say the zoning changes will potentially bring 3,500 new units to the neighborhood — 900 of which will be set aside for lower-income and middle income families. (Bloomberg via Getty Images / New York Post) 
 

A Delicate Balancing Act 

Financial incentives can also play a role in promoting equitable development alongside rezoning. Zoning bonuses, for example, can be offered to developers who incorporate affordable housing units or prioritize hiring local businesses during construction. Additionally, funds generated from rezoning initiatives can be directed towards programs that benefit existing residents, such as small business grants or job training initiatives. 

Ultimately, the impact of neighborhood rezoning in New York City is multifaceted. While it can spur development, create opportunities for affordable housing, and generate economic benefits, it must be carefully planned and executed to mitigate potential downsides like displacement and loss of community character. Striking a balance between growth and preservation remains a continuous challenge for the city as it strives to accommodate the needs of a dynamic population. Moving forward, effective community engagement, long-term planning, a commitment to equitable development, and the preservation of a neighborhood’s unique identity will be essential for ensuring that rezoning benefits all New Yorkers. 

References 

  • Independent Budget Office of New York City. Analysis of the East New York Rezoning. 
  • NYC.gov. City Planning Commission: Public Participation.  
  • NYU Furman Center. Zoning and Development in New York City: 2003-2007. 
  • Schuerman, M., & Wiley, J. East New York’s rezoning, five years later: Did it deliver affordable housing and economic opportunity? Gotham Gazette