‘Affordable New York’ pours fuel on already fiery Flatbush development market
The Brooklyn development market slowed considerably in the first quarter, a continuation of 2016’s trend, as the expiration of the popular 421-a tax incentive program kept investors sidelined. Now that the program has been reinstated in the form of “Affordable New York,” neighborhoods that saw a lull in activity, such as Flatbush, are now primed for a significant pickup in demand.
It is no secret that the expiration of the 421-a tax exemption a year and a half ago severely dampened new development projects throughout New York City, with the downturn in Brooklyn particularly pronounced.
New York City’s biggest borough saw total development dollar volume in the first quarter at just over $331 million, an astonishing 45% drop from the $619 million tallied during the period in 2016, according to Ariel Property Advisors research. Only 54 transactions were recorded in the first quarter, a remarkable 40% and 32% below the same quarters in 2015 and 2016, respectively.