A Crisis That Demands Action
New York City’s housing shortage cuts deep. Families face impossible rents, and affordable homes vanish faster than they appear. Over 100 million Americans can’t buy a median-priced home, and in New York, only 35 affordable units exist for every 100 low-income renters. Yet, at the heart of Times Square, a bold solution takes shape. The 5 Times Square project will convert a nearly vacant office tower into 1,250 homes, including 313 permanently affordable units for those earning below 80 percent of the area’s median income.
This project redefines urban possibility. Governor Kathy Hochul and Mayor Eric Adams have turned a moment of crisis into opportunity, transforming underused commercial spaces into thriving, mixed-income communities. Their collaboration shows how leadership can prioritize residents over profits, addressing a shortage that’s priced out millions.
Why should New Yorkers endure a system that leaves them behind? The 5 Times Square conversion delivers results, not promises. By repurposing nearly a million square feet of office space, it proves that innovative policy can make cities more inclusive and sustainable.
The stakes are staggering: a national deficit of eight million housing units, with Black renters burdened at twice the average rate. Hochul’s decision to eliminate the 60-year-old 12 Floor Area Ratio cap, a barrier to residential development since 1961, opens new doors. Paired with the 467-m tax incentive, which ensures affordability in conversions, this approach champions equity and access.
Some defend rigid zoning laws, claiming they safeguard property values or neighborhood identity. Such arguments often hide resistance to progress, ignoring the human toll of stagnation. When 57 percent of U.S. households can’t afford a $300,000 home, clinging to old rules isn’t just misguided; it’s unjust.
Leadership That Builds Solutions
Hochul’s FY25 budget reshapes New York’s future. By lifting the FAR cap, it allows denser residential projects in high-demand areas like Times Square. The 467-m tax exemption mandates that 25 percent of units remain affordable, ensuring growth serves everyone. Since April 2024, 10,000 apartments have emerged from office conversions, with 18,000 more planned through the City of Yes for Housing Opportunity initiative.
This is government acting with purpose: dynamic, forward-thinking, and focused on residents’ needs. Set to start construction in 2025 and complete its first phase by 2027, 5 Times Square will generate 1,400 construction jobs and 830 permanent positions, while achieving a 30 percent MWBE participation goal. It’s a victory for workers, communities, and economic vitality.
Some, echoing groups like the Heritage Foundation, insist local zoning control should override state action. They argue reforms undermine property rights or erode community character. But when local decisions perpetuate a crisis that excludes millions, state intervention becomes essential. New York’s leaders prove this with tangible outcomes.
The project’s transit-oriented design sets a new standard. Located at Seventh Avenue with access to 12 subway lines, 5 Times Square promotes sustainable living and reduces car reliance. The Federal Transit Administration’s $68.9 million TOD program supports this vision, fostering walkable, equitable neighborhoods. Why settle for gridlocked streets when we can create communities that thrive?
History backs this approach. In the 1990s, New York’s 421-g tax incentive turned 13 million square feet of outdated offices into nearly 13,000 homes. Today’s policies expand that legacy, showing how public-private partnerships, grounded in affordability, deliver lasting impact.
Critics advocate for market-driven development without government support, pointing to reforms in states like Utah or Florida. Yet those efforts often lack New York’s focus on equity and scale, favoring suburban sprawl over dense, transit-rich urban centers. Without affordability requirements, market solutions can widen inequality.
A Vision for Every City
The 5 Times Square project offers a roadmap for urban renewal. With office vacancy rates approaching 19 percent in 2025, per CBRE, and hybrid work reducing commercial demand, converting offices is a practical solution. Cities like Los Angeles and Washington, DC, are adopting similar reuse policies, but New York’s ambition stands out.
This initiative transforms Times Square into a true neighborhood. By preserving 37,000 square feet of retail alongside new homes, it fosters a vibrant, 24/7 community. Urban planners stress balancing economic growth with cultural preservation, and 5 Times Square achieves both.
What happens if we fail to act? Cities risk becoming playgrounds for the wealthy, with working families pushed out and urban cores left empty. Hochul and Adams chart a different course, reclaiming underused spaces for the public good.
The national housing crisis calls for broader action. The Bipartisan Policy Center’s push for an expanded Housing Trust Fund and more vouchers aligns with New York’s model. With 7.1 million affordable units missing for low-income renters, local efforts alone won’t suffice. New York’s progress should spark a federal plan to ease zoning, increase subsidies, and promote mixed-income developments.
As 5 Times Square takes shape, it symbolizes what’s achievable when leaders reimagine urban spaces. It urges every city to repurpose vacant offices, embrace transit-oriented growth, and prioritize housing. Will we seize this moment, or let the crisis deepen? New York has chosen progress, and the nation should follow.