Manhattan has been the epicenter of real estate development for decades, setting the gold standard for high-density housing, urban revitalization, and luxury high rises. But with sky-high prices and dwindling space in the heart of NYC, developers are looking northward. Enter Yonkers, a city on the rise with a multifamily housing boom that draws comparisons to Manhattan’s historic growth.
Could Yonkers be the next Manhattan? Here at Covercy, we’re seeing a lot of indicators that the evolving city’s development trajectory mirrors Manhattan’s in some remarkable and noteworthy ways.
The Yonkers Multifamily Boom: Manhattan-esque Growth?
Much like Manhattan during its early 20th-century expansion, Yonkers is seeing a rapid influx of residential high rise developments fueled by population growth, investment from major real estate firms, and government-backed incentives. While Yonkers still lacks the density and skyscraper-filled skyline of Manhattan (let’s face it—Manhattan is in a league of its own), its transformation in the past decade has been impressive.
Real Estate Developers Betting Big on Yonkers
Just as Manhattan’s early development was driven by ambitious builders transforming the city with residential towers and mixed-use properties, a similar pattern is emerging in Yonkers. Several high-profile real estate firms have invested heavily in the city, reminiscent of the financial powerhouses that shaped Manhattan.
- Extell Development Company, known for its luxury Manhattan skyscrapers, is developing Point Street Landing, a massive mixed-use project right along the Yonkers waterfront. A similar strategy was used in early 20th-century Manhattan, resulting in vibrant, high-density communities.
- RXR Realty, responsible for high-end Manhattan developments, has already completed Yonkers’s Sawyer Place, a downtown luxury complex with 438 rentals.
- AvalonBay Communities, a national player in multifamily housing, has developed 609 new rental apartments at 79 Alexander Street, following a model similar to Manhattan’s residential conversions of industrial spaces.
- Titan Real Estate Development is currently on track to develop a 340-unit apartment project, a similarly rapid pace Manhattan saw in the post-war era.
Municipal Policies Fueling Yonkers’s Growth
New York City’s real estate success was built on a combination of transit-oriented development, financial incentives for builders, and zoning changes that encouraged density. Yonkers is following a similar playbook:
- Tax Incentives & Development Grants – The Yonkers Industrial Development Agency (YIDA) offers property tax abatements and sales tax exemptions to developers, much like Manhattan’s use of tax incentives to spur growth in the Financial District and Hudson Yards.
- Transit-Oriented Development (TOD) – Much like Manhattan’s reliance on the subway to enable high-density living, Yonkers is developing around its commuter rail stations, making it an attractive location for those working in Manhattan.
- Affordable Housing Requirements – Similar to inclusionary zoning policies in NYC, Yonkers requires a portion of new developments to include affordable housing, ensuring long-term sustainable growth.
Comparative Policies in Nearby Tri-State Municipalities
Similar policies have been implemented in other municipalities, leading to robust growth in multifamily housing:
- New Rochelle, New York: The city has adopted a comprehensive plan that includes zoning incentives for high-density residential developments near transit hubs. This has resulted in a surge of new multifamily projects and a revitalized downtown area.
- White Plains, New York: By offering tax incentives and embracing TOD principles, White Plains has attracted several multifamily developments, enhancing its urban appeal and residential density.
- Stamford, Connecticut: Stamford’s use of tax abatements and zoning reforms has spurred significant multifamily housing growth, particularly in its downtown and waterfront districts.
New Rochelle, New York: The city has adopted a comprehensive plan that includes zoning incentives for high-density residential developments near transit hubs. This has resulted in a surge of new multifamily projects and a revitalized downtown area.
White Plains, New York: By offering tax incentives and embracing TOD principles, White Plains has attracted several multifamily developments, enhancing its urban appeal and residential density.
Stamford, Connecticut: Stamford’s use of tax abatements and zoning reforms has spurred significant multifamily housing growth, particularly in its downtown and waterfront districts.
Does Yonkers Have the Potential to Be Another Manhattan?
While Yonkers is experiencing a real estate renaissance, there are still key differences between the two cities. Manhattan’s transformation into a global financial and cultural hub was fueled by industries like finance, media, and tourism. Yonkers, on the other hand, is primarily a residential expansion with mixed-use elements. However, with its waterfront revival, luxury developments, and proximity to NYC, it’s not hard to see why comparisons are being made.
For real estate GPs exploring multifamily development opportunities in the tri-state area, Yonkers presents a prime investment landscape with strong growth potential. As you navigate deal sourcing, capital management, and investor relations, Covercy provides the tools to streamline your operations and scale your firm. From seamless capital calls to automated distributions and real-time investor reporting, Covercy empowers you to manage your assets with precision—so you can focus on securing the next big deal.
Discover how Covercy can help today.
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