NYC's 'Crappy Luxury' Buildings Plagued by Maintenance Issues

Tenants paying top dollar for new apartments face chronic problems like water outages, no heat, and infestations.

Mar. 16, 2026 at 5:52pm

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A Gothamist investigation found that nearly 10% of New York City's residential buildings opened since 2016 have significantly higher rates of housing code violations compared to the citywide average. Tenants in these amenity-rich buildings in Brooklyn, Queens, and The Bronx are battling chronic maintenance issues like water outages, flooding, heat failures, and infestations, despite paying market-rate rents. Experts link the problems to growing industry pressures, including cash-strapped developers cutting costs, rising material prices, and a shortage of skilled workers.

Why it matters

The prevalence of 'crappy luxury' buildings in New York City highlights the challenges facing the real estate industry, as developers struggle to balance quality construction with rising costs and tight timelines. This trend not only impacts tenants who are paying premium prices for subpar living conditions, but also raises broader questions about the sustainability of the city's real estate boom and the need for reforms to address these issues.

The details

The report found that nearly 10% of the city's residential buildings opened since 2016 have significantly higher rates of housing code violations compared to the citywide average. Complaints range from cheap finishes to full-on power outages. The problem has become so dire at amenity-rich buildings in Brooklyn, Queens, and The Bronx that market-rate tenants are getting organized, lobbying for repairs and rent concessions. Experts link the chronic maintenance problems and poor construction to growing industry pressures, including cash-strapped developers cutting costs, rising material prices, and a shortage of skilled workers.

  • The 432 Park Ave. tower, a Billionaires' Row supertall, has been plagued by issues since its 2015 debut.
  • 38 Sixth, a new affordable housing development in Prospect Heights, has racked up 1,320 complaints over issues like leaks and roaches over the last two years.
  • Tenants of Mott Haven's One38 have reported power outages, a crumbling facade, and other chronic issues since the two-year-old residential tower opened.

The players

Gothamist

A news website that conducted the investigation into the prevalence of maintenance issues in new residential buildings across New York City.

Darrick Borowski

An architect and housing researcher who told Gothamist that "the quality of everything that goes into construction seems to be going down while the prices just continue to go up."

Ilana Maier

A spokesperson for the New York City Department of Housing Preservation and Development, who told Gothamist the city is investigating conditions at buildings like One Blue Slip.

Avanath Capital

An investment firm that took over the 38 Sixth affordable housing development in Prospect Heights and said they are responding to complaints, but denied there are water issues.

Joseph Klein

The managing agent for the One Blue Slip development in Greenpoint, who blamed the building's issues on the borough's older water and electrical infrastructure.

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What they’re saying

“The quality of everything that goes into construction seems to be going down while the prices just continue to go up.”

— Darrick Borowski, Architect and housing researcher (Gothamist)

“We had no water, and the next night there was a power outage. It is crappy luxury.”

— Rowena Manapat, Tenant of One38 in Mott Haven (Gothamist)

“It's come to the point this year where everything's breaking down and people's health is at stake.”

— Unnamed resident, Tenant of One Blue Slip in Greenpoint (Gothamist)

What’s next

Reforms are underway in Albany to cut down the costly wait time for building permits, offering hope that reducing developers' construction timelines will help reverse the trend of shoddy builds.

The takeaway

The prevalence of 'crappy luxury' buildings in New York City highlights the need for greater oversight and accountability in the real estate industry, as well as the importance of balancing quality construction with rising costs and tight timelines. This issue not only impacts tenants, but also raises broader questions about the sustainability of the city's real estate boom and the need for reforms to address these challenges.