New York said it plans to facilitate the conversion of office buildings into housing, primarily in midtown Manhattan, and to open manufacturing areas south of Times Square to new residential developments.

The decision is part of a broader push to tackle housing issues and reinvent the city. With the measure, office buildings built before 1990 would be eligible to be converted into housing, an update of existing 1961 and 1977 restrictions, depending on the area, Bloomberg explained.

Mayor Eric Adams outlined his plans during a press conference, picked up by The New York Times, explaining that his intention is to allow the construction of more homes by rezoning the manufacturing areas between 23rd St. and 40th St. from Fifth Ave. to Eighth Ave. "A separate plan focusing on conversions of office buildings into residential could allow for 20,000 new homes, the city estimates." The New York Times said.

'They fall far short of the housing need'

However, it was learned that the plans have to be approved by the New York City Council, and the vote is expected to be held some time next year. Despite the city's expectations, the NYT estimated that the efforts "they fall far short of the housing need in New York, which is dealing with a shortage estimated to be in the hundreds of thousands of homes."

Moreover, the city is not only facing a crisis in housing shortages. Citizens also have to pay extremely high rent. The average monthly rental price in Manhattan broke records in the month of July after it experienced a 9% increase over last year. Currently, the average rental cost is $5,588.

At the end of 2022, a survey by The Economist revealed that New York is one of the most expensive cities in the world. It shared the No. 1 spot with Singapore.