This first issue of 2025 comes at a pivotal moment for the real estate industry and the broader economy. With President Donald J. Trump now back in the White House, a wave of pro-business policies is anticipated to shape the landscape of development and investment. From tax incentives to deregulatory measures, the administration’s focus on economic growth promises new opportunities for developers, property owners, and investors alike. As we dive into the year ahead, we’ll keep an eye out on how these changes could impact NYC’s development market.

Locally, Mayor Adams coming off a win getting City of Yes passed, just announced even more initiatives to help build more housing faster. These initiatives include setting up the “Charter Revision Commission (CRC)” The NYC Charter is essentially “The Rules of The City of New York”. It defines the functions and procedures of City government, including City Planning, Tax Appeals, City Property, Department of Buildings, Board of Standards and Appeals, Department of Finance, Landmarks Preservation Commission, and the list goes on and on. It shapes how we live and work as a city.

This commission will review the entire city charter with an aim on how we can better combat the city’s generational housing crisis.

“Our administration’s housing goal is clear: deliver as much affordable housing to working-class New Yorkers and their families as we make our city more affordable — and we will continue to use every tool at our disposal, including a careful examination of the city’s charter, to create and preserve affordable housing in our city. Even after the success of our ‘City of Yes for Housing Opportunity’ proposal that will help us create 80,000 new homes over the next 15 years and invest $5 billion towards critical infrastructure updates and housing, we know there is still more that we can and must do to tackle the cost of living in our city. Housing proposals and land use measures, and the negotiations that come with them, are complex and critical to ensuring our city remains affordable, which is why we’ve assembled this esteemed group of housing and affordability experts to explore how reforms of our city’s charter can tackle the crisis we are facing. New Yorkers need housing, and we will do everything in our power to continue to deliver it to them.”

-Mayor Adams 12/12/24.

Another initiative just announced is being called “City of Yes for Families”. This will be a new set of zoning proposals as well as non-zoning measures to encourage family-sized affordable homes.

I will share more details as they come available.

“The Manhattan Plan” is another initiative just introduced with the goal of adding an additional 100,000 new homes in the borough over 10-years. This plan includes the Midtown South Mixed-Use Plan that I touched on in past issues, among new plans in the weeks to come. Stay tuned.

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Financial Market Snapshot:

• Federal Prime Rate: 7.5%
• Secured Overnight Financing Rate (SOFR): 4.29% (down from 4.65% last month)
• United States Federal Funds Rate: 4.25%
• United States Annual Inflation Rate: 2.89% (up from 2.75%; now 3 consecutive increases.)
• US 1-Year Treasury Rate: 4.209%
• US 2-Year Treasury Rate: 4.268%
• US 3-Year Treasury Rate: 4.319%
• US 5-Year Treasury Rate: 4.394%
• US 10-Year Treasury Rate: 4.58%
• Treasury Bill Auction Rates:
• 4-Week Term: 4.240%
• 8-Week Term: 4.235%
• 13-Week Term: 4.225%
• 26-Week Term: 4.180%
• US Bonds:
• 20-Year Bond: 4.686%
• 30-Year Bond: 4.913%
• Mortgage Rates:
• 30-Year Fixed Rate: 7.35%
• 15-Year Fixed Rate: 6.50%
• 5-Year ARM: 6.97%
• Ground Up Construction Rates: 8.5%+
• Hard Money Lending Rates: 11%+