New York City's Fair Housing Growth Strategy targets 350,000 new homes and 100,000 preserved units over five years to address a need for roughly 700,000 homes across the decade. The strategy emphasizes preservation alongside new construction.
A 2026 Association for Neighborhood & Housing Development report found that 63,700 subsidized affordable apartments face financial distress. Replacing those units through new construction could cost between $10.2 billion and $26.8 billion in public subsidies, according to the report.
Preservation can require less capital than replacement. Affordable housing operates under financial pressure because income restrictions limit revenue while maintenance, insurance, utilities and capital improvements drive expenses. Public-private capital structures combining subsidies, subordinate financing, private investment and tax incentives can make preservation feasible.
The Reid Park Rock project in East New York, redeveloped by Fairstead, BRB, LDCENY and NYHCA, cost approximately $375,000 per unit to acquire, restructure and modernize. Financing partners included Vistria's impact capital, Merchants Bank and subordinate subsidy financing from New York City.
By contrast, two recent new construction projects in East New York cost significantly more per unit. Innovative Urban Village delivered 385 units at $700,000 per unit. Alafia Phase I delivered 576 units at $672,000 per unit. Both required substantial public subsidy, including low-income housing tax credits and subordinate low-cost subsidy loans.
The Association for Neighborhood & Housing Development describes preserving existing subsidized housing as "the most practical and cost-effective strategy to maintain affordability in New York City."