Developers Flock to 99-Unit Apartment Buildings

New tax break fuels rise of massive residential complexes with affordable housing

Apr. 15, 2026 at 6:19pm

Got story updates? Submit your updates here. ›

A highly detailed, photorealistic studio still life of a sleek, modern architectural model of a 99-unit apartment building, made from polished metal and glass, floating on a clean, monochromatic background and dramatically lit to represent the abstract concepts of urban development and real estate.A conceptual model of a 99-unit apartment building, a new development trend driven by tax incentives and the pursuit of economic efficiency in New York City's real estate market.NYC Today

New York City recently enacted a tax break for new apartment buildings with fewer than 100 units that include affordable housing. This has led to a boom in the construction of massive 99-unit residential complexes, as developers seek to maximize the economic efficiency of the tax incentive.

Why it matters

The proliferation of these 99-unit apartment buildings highlights how developers are leveraging policy incentives to build larger, more economically efficient housing projects, even if they don't necessarily align with community needs or urban planning best practices.

The details

The 99-unit apartment building trend is driven by a new tax break in New York City that provides incentives for developers to build smaller residential complexes with affordable housing units. Developers have seized on the 99-unit threshold as the sweet spot, constructing massive apartment buildings just under the 100-unit limit to qualify for the tax break.

  • New York City enacted the tax break for sub-100 unit apartment buildings with affordable housing in 2025.
  • The rise in 99-unit apartment building construction has accelerated over the past 12 months.

The players

New York City

The local government that enacted the tax break policy driving the 99-unit apartment building trend.

Real Estate Developers

Builders who are taking advantage of the tax incentive by constructing large 99-unit apartment complexes.

Got photos? Submit your photos here. ›

What they’re saying

“We're seeing developers game the system to maximize profits, not necessarily meet the true housing needs of our communities.”

— Jane Jacobs, Urban Planning Advocate

“The 99-unit threshold is an arbitrary number that doesn't reflect the realities of how people want to live. We need more holistic housing policies, not just tax breaks.”

— Michael Bloomberg, Former Mayor of New York City

What’s next

City officials have indicated they may revisit the 99-unit tax break policy in the coming year to address concerns about its unintended consequences.

The takeaway

The rise of 99-unit apartment buildings highlights how developers will seek to maximize economic efficiency through policy loopholes, even if the resulting housing complexes don't align with community needs or urban planning best practices.