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While many U.S. cities face fierce community opposition to new housing, the commuter town of New Rochelle, NY, has successfully added thousands of new apartments. By implementing a developer-friendly policy framework, the city has increased its housing supply by 37% over a decade, maintaining relative affordability in the expensive New York City metro area. This approach offers a practical blueprint for other municipalities grappling with a national housing crisis.
City officials adopted a strategic policy framework designed to remove common barriers to development. The key initiatives included streamlining environmental reviews, offering developers tax incentives, and creating standardized zoning rules. The most significant measure was a guaranteed 90-day approval process for projects meeting specific criteria, a stark contrast to the multi-year delays common in other cities. This "by-right" approval process provides certainty for developers, making it easier and cheaper to build homes. By approving thousands of units at once through a master plan, New Rochelle avoided the piecemeal zoning approvals that often stall progress elsewhere.
The influx of new housing supply has acted as a pressure valve on rents. According to data from Apartment List, New Rochelle's median rent declined by 2% from 2020 to 2023, a period when the national median rent saw double-digit increases. While median rents are now 1.6% higher than in 2020, this growth is significantly below the 25%+ surges seen in New York City and nearby New Jersey markets like Hoboken and Jersey City. Rents in New Rochelle currently range from approximately $2,000 for a studio to $8,000 for a three-bedroom unit, offering a more accessible option for those priced out of Manhattan.
The rapid growth has not been without its growing pains. Longtime residents report issues with construction disruption, including road and sidewalk closures, noise, and reduced parking. Some community members express concern that new, upscale high-rises are changing the city's character and that newcomers from New York City may not fully integrate into the local community. In response, city leaders have begun making concessions, such as Mayor Yadira Ramos-Herbert's willingness to consider forms of rent control and an existing mandate that developers set aside at least 10% of new units as affordable housing.
New Rochelle's success demonstrates that a proactive, partnership-based approach can yield significant results. The city’s strategy has attracted over $2.5 billion in new downtown investment. The model is gaining traction; states like California and Oregon have recently passed laws to loosen restrictive zoning and environmental regulations, and a bipartisan housing package is advancing on Capitol Hill. Based on our experience assessment, the key takeaways for other municipalities are:
New Rochelle’s experience shows that prioritizing housing supply is a viable path to addressing affordability challenges, even if it requires managing the inevitable disruptions that come with growth.
