NEW YORK CITY — The New York City Planning Commission has approved the Midtown South Mixed-Use Plan (MSMX), a rezoning initiative that could ultimately facilitate the creation of as many as 9,700 new residences across a 42-block section of Midtown Manhattan.
The MSMX plan covers four areas centered around Herald and Greeley Square, located between West 23rd and West 40th streets, as well as Fifth and Eighth avenues. The area today is largely defined by commercial and industrial uses, with current land-use rules restricting new housing development.
Midtown South is currently home to more than 7,000 businesses, 135,000 jobs and various public transportation hubs, but the neighborhood has struggled to rebound in the aftermath of the COVID-19 pandemic as hybrid work schedules have become more entrenched. In addition to these commercial vacancies, the submarket is subject to restrictive zoning rules that limit opportunities for New Yorkers to live near their jobs.
“For far too long, outdated zoning policies have limited the potential of this well-resourced area to help address New York City’s urgent housing needs,” says Rachel Fee, executive director of the New York Housing Conference, nonprofit affordable housing policy and advocacy organization. “In the midst of a dire housing crisis, this plan opens the door to new housing opportunities, including much-needed affordable housing.”
The current average rental price for a one-bedroom apartment in Manhattan is $4,913, according to RentCafe.
Under the terms of the MSMX proposal, the establishment of new mixed-use zoning districts will also enable the construction of up to 2,900 permanently affordable homes through Mandatory Inclusionary Housing.
These new districts were created through a combination of Mayor Adams’ “City of Yes for Housing Opportunity” initiative and the Adams administration’s efforts to lift the FAR (floor-to-area) ratio cap, a zoning regulation that limits the total floor area of a building relative to the size of the lot it’s built on. These changes are designed to facilitate opportunities for residential development, office-to-housing conversions and the integration of nonresidential uses like light manufacturing facilities, libraries and schools.
Additionally, the MSMX plan would establish the “Special Midtown South Mixed-Use District,” to ensure that new high-density residential buildings reflect the neighborhood’s loft-like character, featuring high ceilings, open spaces and flexible layouts. The plan also requires active street fronts with elements like ground-floor retail, while offering density bonuses and floor area exemptions in exchange for providing a defined public benefit to the community.
“New York is not full, especially in Midtown. We have capacity for thousands of new homes that will lower rent pressure for everyone while preventing displacement, reducing sprawl and supporting the density that is our climate superpower,” said Ryder Kessler, co-founder of Abundance New York, an advocacy group in New York that promotes policies for more housing, infrastructure and innovation.
The MSMX plan is part of the city’s broader “Manhattan Plan,” which aims to create more than 100,000 new homes across the borough over the next decade.
This week’s vote follows recommendations from Manhattan Community Board 5, the Manhattan Borough Board and Borough President Mark Levine. The proposal now heads to the New York City Council for a public hearing and vote.
— Abby Cox