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New York is one of the world’s most valuable and successful cities. Yet even a city with enormous economic strength can become difficult for ordinary people to live in when housing supply fails to keep pace with demand. That is why New York’s housing debate deserves attention far beyond the United States—especially in India, where cities are expanding at extraordinary speed.

As someone who has spent more than twenty-five years observing real estate and urban development, I see a simple lesson: a city cannot depend only on rising land values, impressive buildings and infrastructure announcements. It must continuously create enough well-connected homes for the people who make the city work.

What the New York data actually shows

The 2023 New York City Housing and Vacancy Survey, conducted by the US Census Bureau for the city, reported a net rental vacancy rate of just 1.41 percent. Only 33,210 units were available for rent out of a rental stock of about 2.36 million occupied and available units. The report described this as one of the lowest vacancy rates since the survey began in 1965.

A very low vacancy rate gives tenants fewer choices and increases competition for available homes. It does not mean that every landlord benefits equally or that every project is automatically profitable. It means that the market has too little flexibility. When supply becomes this tight, even households with stable incomes may struggle to find a suitable home near employment, schools and transport.

New York is now trying to unlock more supply

In December 2024, the New York City Council approved the “City of Yes for Housing Opportunity” zoning reforms. The Council estimated that the changes could enable more than 82,000 homes over fifteen years. The plan included changes to residential density, parking requirements, accessory dwelling units, office conversions and affordable-housing incentives, together with a reported $5 billion commitment for housing and neighbourhood infrastructure.

By December 2025, the city reported that more than 12,000 homes were in the pipeline through office-to-residential conversions, including over 3,000 permanently affordable units. These are plans and pipeline figures—not completed homes—and results must be judged over time. Still, the direction is important: underused commercial space, outdated parking mandates and rigid zoning rules are being reconsidered because the cost of doing nothing has become too high.

The Indian opportunity is to act earlier

The World Bank estimated in November 2022 that around 600 million people could be living in Indian cities by 2036, representing about 40 percent of the population. It also estimated that India would require approximately $840 billion in urban infrastructure investment over fifteen years.

For me, the important word is not only “housing”; it is “urban.” New homes cannot be planned separately from roads, public transport, water, drainage, power, schools, healthcare and employment. If approvals create residential density without matching infrastructure, the result is congestion and lower quality of life. If infrastructure arrives but housing approvals remain too slow, prices and rents move beyond the reach of the workforce.

Four lessons for growing cities

First, plan for demand before a shortage becomes a crisis. Urban planning often reacts to yesterday’s population. Land use, transport and services should instead be based on where people and jobs are likely to move over the next ten to twenty years.

Second, allow more homes near public transport and employment centres. Density is not automatically a problem. Poorly serviced density is. Well-designed development near transit can reduce long commutes, support local businesses and use expensive public infrastructure more efficiently.

Third, use existing buildings intelligently. Not every vacant or underused office can become housing; floor plates, light, ventilation, fire safety and economics all matter. But where conversion is practical, regulations should make it possible without compromising safety.

Fourth, measure delivery rather than announcements. Sanctioned units, pipeline estimates and investment commitments are useful indicators, but families live in completed homes. Cities should publish clear data on approvals, construction starts, completions, affordability and infrastructure capacity.

Affordability is part of economic competitiveness

When nurses, teachers, technicians, hospitality workers and young professionals cannot live within a reasonable distance of work, the entire city pays. Businesses face higher salary pressure and staff turnover; workers lose time and money in travel; families lose quality time; and informal development expands.

My view is that successful cities must treat housing as economic infrastructure. New York’s experience shows that global importance and high property values do not protect a city from an affordability problem. India still has the opportunity to build ahead of demand in many emerging urban centres. That opportunity should not be wasted.

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