NYC’s “City of Yes” zoning reforms could expand housing supply in Brooklyn and Queens—especially in Long Island City, Gowanus, and Downtown Brooklyn—potentially easing long-term price pressure, though short-term demand may spike before new inventory arrives.
What Is the City of Yes?
The City of Yes for Housing Opportunity is New York City’s ambitious plan to modernize decades-old zoning laws and make it easier to build new housing in all five boroughs. The initiative aims to create more affordable and market-rate units by allowing denser development near transit, easing restrictions on conversions, and supporting mixed-use projects.
Mayor Eric Adams’ administration projects that the policy could generate 100,000 additional homes over the next 15 years, with much of that potential centered in Brooklyn and Queens, where underutilized lots and industrial corridors can be repurposed.
What It Means for Buyers Right Now
In the short term, the buzz around the City of Yes is already energizing buyer interest in rezoning corridors such as:
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Gowanus: Developers are fast-tracking mixed-use permits in anticipation of relaxed building size limits.
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Long Island City: Investors expect a rebound in condo construction, driving competition for existing inventory.
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East New York & Bushwick: Buyers are eyeing long-term appreciation as the city prioritizes new housing east of downtown Brooklyn.
According to the Douglas Elliman October 2025 Market Report, Brooklyn’s median sales price rose 2.4% year-over-year, while Queens saw a 1.8% uptick, largely due to limited listings ahead of potential new supply.
The Long-Term Price Outlook
If zoning reforms pass as proposed, more housing could stabilize price growth over time—particularly for first-time buyers priced out of Manhattan. But experts caution that construction timelines and financing challenges mean meaningful relief may take years.
StreetEasy’s October 2025 analysis suggests that even with added supply, demand from buyers and renters returning to NYC will keep Brooklyn and Queens appreciation rates above national averages through 2026.
What Buyers Should Do
If you’re considering purchasing in a neighborhood likely affected by the City of Yes:
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Act early if you want to capture pre-rezoning appreciation.
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Focus on areas near transit corridors slated for up-zoning.
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Consult a local agent with access to borough-specific market data and pre-development insights.
Helping NYC buyers navigate today’s evolving market in Brooklyn, Queens, and Manhattan. Contact Ryan Roberts – Licensed Real Estate Salesperson – Douglas Elliman Real Estate