The Future of Multifamily Housing: A Vision for Affordability and Accessibility
- Scott Burman
- Apr 9
- 5 min read
As the United States grapples with a persistent housing crisis, multifamily housing emerges as a pivotal solution to address affordability and accessibility challenges. For regions like Long Island, the stakes are particularly high. The National Association of Realtors (NAR) reported that the U.S. housing market only had a 3.5 month supply of homes available at the end of January 2025. This is significantly lower than the 5-6 months needed for a balanced market, indicating a substantial housing shortage. With soaring housing costs and limited inventory, the need for innovative multi-family housing has never been greater.
The Affordability Imperative
New York’s housing market is at a crossroads. The affordability gap continues to widen, leaving young professionals and middle-income families struggling to find viable housing options. According to recent data, the average premium for a monthly mortgage payment versus rent remains above 35%, underscoring the financial barriers to homeownership in today’s high-interest-rate environment. This disparity highlights the critical role multifamily housing plays in providing cost-effective solutions for renters and condo buyers alike.
However, the multifamily sector faces its own challenges. Despite the headwinds, there is hope on the horizon. As new apartment units emerge, rent growth is expected to slow, improving affordability for renters. This trend aligns with Governor Hochul’s commitment to expanding affordable housing through innovative development — a strategy that can transform communities while addressing housing shortages.
What Is Slowing Down The Growth Of Multi-Family Housing?
The multifamily housing sector, while critical to addressing the nation’s housing shortage, faces significant challenges that threaten its growth and viability. This especially true in Long Island where we are grossly under supplied in multifamily housing relative to the rest of the country. Additionally, housing prices on Long Island are amongst the highest in the country. These issues plus—labor shortages, rising costs, and regulatory barriers—are interconnected and exacerbate delays, inflate costs, and hinder the development of much-needed housing projects.
Labor Shortages: According to Associated Builders and Contractors (ABC), the construction industry is grappling with a significant labor shortage, with over 400,000 fewer workers needed in 2025 to meet anticipated demand for construction services. This gap not only delays projects but also increases costs as contractors compete for skilled labor. As demand for housing continues to rise, this shortage will only worsen unless workforce development initiatives.
Rising Costs: High interest rates and material costs are major hurdles for new construction. The current economic environment, marked by financing challenges and supply chain disruptions, has inflated the cost of essential commodities like lumber and steel. These financial pressures make it difficult for developers to maintain affordable pricing for units, further exacerbating the affordability crisis.
Regulatory Barriers: Zoning restrictions often limit the feasibility of multifamily projects. Outdated zoning laws favor single-family homes over higher-density developments, reducing land availability and driving up costs. The approval process for new developments is slow and complex, deterring investment in multifamily housing at a time when it is most needed.
Strategies To Accelerate Multi-Family Housing Sector
Despite all these barriers, our development firm is confident that the multifamily market is going to go from strength to strength. Look, we've all felt the pinch – interest rates soaring, construction costs through the roof, and frankly, a bit of uncertainty hanging in the air. But here's the thing: the fundamentals are still strong. The National Association of Home Builders (NAHB) is predicting stabilization by 2026, and I believe they're onto something. As economic conditions find their footing, we're going to see that pent-up demand translate into real momentum.
Now, let's be clear, this recovery isn't going to magically happen. It's not a solo act. It's going to take all of us – developers, policymakers, community leaders – working together. We need a real, concerted effort from both the public and private sectors to tackle those systemic challenges head-on and, even more importantly, seize the incredible opportunities that are starting to emerge.
Focus on Multifamily-Centric Communities: People want more than just an apartment – they want community. Well-designed multifamily spaces that shine include prioritizing amenities like shared green spaces, fitness centers, conference center, children's playroom, party room, and a rooftop pool with cabanas creates vibrant living. These developments address the demand for accessible housing. Access to services and recreation within the complex elevates life. For developers, focusing on multifamily offers a clear strategy and a strong market connection. Catering to renters builds resilient projects that thrive.
Expand Affordable Housing Options: The affordability crisis remains one of the most pressing challenges in the housing market. In 2025, multifamily starts are projected to decline by 11% to a rate of 317,000 units, reflecting ongoing challenges such as supply-chain issues and high interest rates. Developers must focus on creating housing options accessible to low- and middle-income families. This can be achieved by leveraging subsidies, tax incentives, or innovative financing models that reduce upfront costs. Expanding affordable housing provides a practical solution to attract and retain a diverse workforce essential for local economic growth.
Foster Public-Private Partnerships: Collaboration between governments, private developers, and community organizations is critical to overcoming barriers in multifamily housing development. Public-private partnerships (PPPs) can unlock funding opportunities, streamline regulatory processes, and ensure projects align with community needs. PPPs are particularly effective in transit-oriented developments (TODs), where integrating housing with public transportation infrastructure requires coordinated efforts across multiple stakeholders. Which is also why TODs are an area of focus for my company Burman Real Estate.
Address Supply-Demand Dynamics: The multifamily sector is uniquely positioned to alleviate the national housing shortage, which stands at an estimated 3.1 million single-family homes. However, supply constraints—driven by labor shortages and material costs—continue to hinder progress. With over 900,000 multifamily units currently under construction nationwide, developers must carefully manage delivery timelines to avoid oversupply in certain markets while addressing unmet demand in others.
The Mineola Downtown Project: A Blueprint for Success
Multifamily housing is undergoing a clear evolution. We're witnessing a significant emphasis on community and accessibility in new developments. What's become evident is that successful projects now prioritize seamless integration within their neighborhoods. They address crucial housing needs while actively contributing to local vitality. This requires, fundamentally, a collaborative approach.
Located in Long Island, the Mineola Downtown Project by our firm BRE is not just about building homes; it’s about the best of amenities and access to transit, entertainment, shopping, and more. By integrating mixed-use elements and prioritizing proximity to public transit, this development aligns with modern preferences for urban living while addressing the region’s acute housing needs. BRE’s collaboration with local stakeholders ensures that the project reflects community priorities, setting a high standard for future multifamily initiatives.
All It Needs Is A Shared Vision for the Future
The future of multifamily housing lies in its ability to adapt to changing demographics and economic realities. For Long Island and New York as a whole, this means embracing innovative solutions that prioritize affordability without sacrificing quality or sustainability.
As Governor Hochul’s administration continues its push for expanded affordable housing through innovative developments, like the Mineola Downtown Project, offer a roadmap for success. By addressing labor shortages, rising costs, and regulatory barriers head-on, we can unlock the full potential of multifamily housing to create vibrant neighborhoods where everyone has an opportunity to thrive.
The question now is whether Long Island will seize this moment to ensure a sustainable future—or risk falling behind in meeting its residents’ most basic needs.
