New York’s 485x tax break is stalling large-scale housing development, as its wage rules trigger costly union pay above 99 units. Developers are increasingly capping projects at 99 units to avoid a $72.45/hour wage scale, leading to fewer loans, more expensive housing, and reduced productivity. While union leader Gary LaBarbera blames profit-driven developers, lenders say the math doesn’t work for larger projects. Reform is unlikely before 2027 due to political gridlock and “housing fatigue” in Albany. As a result, New York faces a continued housing shortage with no short-term fix in sight.
New York’s 485x
