Zoning Laws: The Real Obstacle to Affordable Housing in NYC

When New Yorkers talk about the housing crisis, the conversation often turns to inequality, sky-high rents, billion-dollar condos, and working families pushed farther from the city’s core. Inequality certainly makes the problem worse, but it is not the root cause of why housing is so limited and expensive. The deeper issue lies in the city’s restrictive zoning laws.

Zoning rules decide what can be built, where it can go, and how tall it can be. In much of New York City, especially in low-rise, wealthier neighborhoods, zoning limits density, restricts mixed-use buildings, and even bans multi-family housing altogether. The result is an artificial shortage of apartments in a city that urgently needs more homes. Even as demand rises, these rules hold back supply.

This shortage pushes prices higher than they would be in a freer market. Wealthy residents can outbid everyone else, which makes inequality visible in real estate, but the real reason prices soar is that the rules prevent us from building enough housing for people at every income level.

Ironically, many of these zoning laws were introduced to “protect neighborhood character” or prevent overcrowding. In reality, they often preserve privilege by freezing neighborhoods in time, keeping property values high for current owners while shutting out newcomers, especially low- and middle-income families.

Loosening these restrictions, allowing taller buildings near transit, making room for more multi-family units, and encouraging the conversion of underused commercial space could do more to lower housing costs than any rent subsidy or luxury tax. More housing means more choices, which takes the pressure off the entire market.

At the Urban Builders Coalition, our mission is to raise awareness about the systemic barriers, like outdated zoning, that limit housing availability. We work to ensure equal housing rights for every New Yorker, and we advocate for policies that open doors rather than close them, so everyone has a fair chance to call this city home.