New Real Estate Report Reveals Dramatic Growth In Westchester

A new real estate report reveals the explosive growth of housing in Westchester County since 2021, with about 12,500 new residential units delivered and another 15,000 units under construction.

Representatives from RM Friedland delivered their findings on Tuesday in White Plains at the Business Council of Westchester’s and the Fordham Real Estate Institute’s annual real estate development conference.

“In the past several years, we’ve seen tremendous growth in development and in multi-residential housing and multi-use properties,” said BCW president and CEO Marsha Gordon. “We’re going to explore the effects of all this development on many aspects of business and community.”

RM Friedland president Sarah Jones-Maturo said that Westchester County is responding to the national housing shortage head-on.

“We believe Westchester serves as a microcosm for the nation, demonstrating how strategic planning, innovative policies and balanced development can create thriving communities,” said Jones-Maturo.

One of the report’s surprising findings is that Westchester County’s new construction has not overcrowded schools. Westchester cities experiencing the most substantial new development activity, such as New Rochelle and Yonkers, have seen a notable decline in their overall student populations between 2018 and 2023. This trend challenges the commonly held assumption that increased residential development leads directly to overcrowded schools.

“The impact of these developments on the schools is minimal at this point,” said David Cortez, CEO of The Leasing Experts, one of the keynote speakers. “I often hear from other people in the community, particularly homeowners, saying our schools are going to become overcrowded. That’s not the case at all.”

The report noted that New Rochelle has emerged as the clear leader in development within Westchester County, with more than 6,145 residential units currently under construction. This rapid growth is due to the city’s strategic investments, its emphasis on transit-oriented projects, and the transformative impact of its Master Development Plan.

The report also pointed to Yonkers, whose key strength is the scale of its development potential, particularly as its downtown area expands further into Getty Square. This expansion is expected to unlock massive opportunities for mixed-use and residential projects.

John Barrett, co-managing director at RM Friedland, explained that the report does not include proposed housing units.

“As a company, we are tracking another 10,000 units that are not under construction yet, but they are appearing before boards, or the ideas have been floated with local municipalities. This is unprecedented for Westchester County,” said Barrett.

The BCW-Fordham panel included two panels moderated by Dr. Joshua Harris, executive director of the Fordham Real Estate Institute, addressing RM Friedland’s findings. Panelists included:

A Reality Check: The Impact of New Development

Kenneth Morrison, managing member of Lemor Development: “Our 80-20 is 80 percent affordable and 20 percent market rate, so the uniqueness about that is that it is extremely expensive to build that kind of housing. This project that we’re working on in Yonkers would be 166 units…. Interest rates went up over the last 12 months, turning a project that was feasible into a project that has a tremendous gap…. The issue that we have is trying to plug that gap without having to raise the rents.”

Peter Chavkin, managing partner of Biddle Real Estate Ventures: “In our condominium product called the Daymark, the first waterfront condominium project in the Edge on Hudson community (Sleepy Hollow), we have about eight months left on construction. We’ve sold 70 of the 100 units already. That’s about two and a half times faster than we would have expected.”

Mayor Yadira Ramos-Herbert, City of New Rochelle: “The model that my predecessors on the City Council experimented with is working. We have 11,000 units approved within a nine-year period, which is remarkable…. It’s the opportunity to really reimagine your city, and so we’re entering phase two of New Rochelle’s renaissance, which is investment in that downtown and activating the first floors.”

Mayor Mary Marvin, Village of Bronxville: “We’re an outlier on the school issue…. We have 35 children that joined the last week of August. (The superintendent) had to add a sixth second grade, which took away the art room at the Bronxville schools, so now they have what they call ‘art on a cart.’ The current taxpayers are not thrilled about what happened to the art room.”

The Development Surge: Community Opportunities and Challenges Faced

Noam Bramson, executive director of Sustainable Westchester: “A zero-growth philosophy is completely unrealistic and undesirable from a wide spectrum of considerations. The better way to look at it is to say we are going to grow. We should grow, but how do we want to grow? The sort of development that we’re all talking about is entirely consistent environmental values and climate action because it’s concentrated in areas that are walkable and that have access to mass transit.” 

Dr. Joseph Ricca, superintendent of the White Plains public schools: “With all the challenges, one of the things that we benefit from is a strong community. Even what we’re doing right now, collaborating, and talking about how we can work together. I’ve had the privilege of working with Mayor (Tom) Roach for the last eight years in partnership with the Common Council and talking about smart choices that we can collaborate on for the benefit of the city and the children. That’s what’s attractive, the commitment to community throughout Westchester County.”

Mark Mathias, Lightbridge Academy/The Barley House: “I love the idea of emboldening the downtown areas of our Westchester communities…. I’m a big proponent for it, but I do share the concerns about impervious surface areas, the flooding issues that we’ve had in Westchester. Traffic is always an issue in every town we’re in.”

Tina Macica, AVP of design and construction, Department of Facilities & Real Estate at Montefiore Health System: “From a broader picture, how do we serve the growing need? A lot of it is going to be staff. As everybody knows, we have a huge doctor and nursing shortage right now, so really being able to deliver facilities and providers to meet these growing communities is very important.”