New York City is increasingly relying on converting old office buildings into housing to address its severe housing shortage. So far this year, permits have been issued for 74 conversion projects creating roughly 10,100 new homes—about a third of all new housing permitted in the city during that period. Since 2023, at least 19,700 units have been permitted through conversions, surpassing the total from 2010 to 2022.

The surge follows a 2024 New York State incentive offering 90% property tax cuts for conversions in Manhattan south of 96th Street, requiring developers to make a quarter of units affordable. A one-bedroom under this system averages about $2,430 monthly, less than half the typical Manhattan rent. The trend accelerated after the pandemic reduced demand for office space.

Despite safety concerns—highlighted by the July 7 buckling of steel columns at the former Pfizer building on East 42nd Street—city officials, including Mayor Zohran Mamdani, affirm conversions are safe and essential. A Times analysis found conversion projects are not more prone to violations than new construction. The city estimates it needs 700,000 new homes over the next decade to meet demand.