City of Yes
Research Report Series
City of Yes | Research Report Series
Low-Density Zoning (R1 - R5) Changes
In December 2024, New York City Mayor Eric Adams and the City Council approved the City of Yes for Housing Opportunity, a sweeping citywide rezoning initiative aimed at addressing the city's deepening housing crisis. This ambitious plan is expected to enable the creation of more than 82,000 new apartments over the next 15 years and includes a $5 billion investment in critical infrastructure and housing development. By expanding where and how housing can be built, the initiative seeks to make it easier to add new homes across all five boroughs.
This research report series will examine the major components of the City of Yes for Housing Opportunity. While exact housing outcomes will vary, each report will explore where the proposed changes are likely to be most impactful. The series will provide a data-driven analysis of how each aspect of the plan could influence housing production, real estate development potential, and pricing across different neighborhoods.
Introduction
The City of Yes dramatically changed New York City's zoning rules, dividing zoning districts into two segments–R6 or higher and R5 or lower.
Higher Density Districts (R6+)
In zoning districts R6 or higher, the City of Yes created a new Floor Area Bonus to include units for low-income housing through the Universal Affordability Preference (UAP), which we analyzed in another report here.
Lower Density Districts (R1-R5)
This report focuses on the changes to lower-density districts between R1 and R5, which have different requirements and opportunities.
Areas Impacted
The picture to the right shows all R1 - R5 zoning lots. A majority of these lots are located in Brooklyn, Queens, Staten Island, and the Bronx.
Low-Density districts are mapped on 71% of New York City's residentially zoned land
Floor Area Ratio (FAR) Changes for R5 and Below Zoning Districts
In this report, we’re focusing on zoning districts between R1 and R5, which will now be subject to a single applicable Floor Area Ratio (FAR). The FAR will be determined based on two main factors:
  1. Whether the zoning lot qualifies as a Qualified Residential Site (QRS)
  1. Whether the development includes mixed uses, such as residential combined with commercial or community facility space
There are no FAR bonuses available to include affordable housing in these lower-density districts.
Qualified Residential Site Checklist
  • To determine the applicable FAR for a site, the first step is to check if it qualifies as a Qualified Residential Site (QRS). To qualify, the site must meet all the conditions under at least one of the six QRS options listed below. To use the Low-Density Checklist, Click Here.
Option 1:
  • R1 through R5 zoning district
  • Lot size of at least 5,000 SF
  • Located within the Greater Transit Zone
  • Has frontage along a wide street or the short dimension of a block
  • It is not located within an R1 or R2 district
Option 2:
  • R1 through R5 zoning district
  • Located within the Greater Transit Zone
  • Contains partial or full Community Facility use on December 5, 2024
Option 3:
  • R1 through R5 zoning district
  • Located outside the Greater Transit Zone
  • Contains partial or full Community Facility use on December 5, 2024
  • Lot size of at least 5,000 SF
Option 4:
  • R1 through R5 zoning district
  • Located in an R3-2, R4, R5 or R5B
  • Contains qualifying senior housing
Option 5:
  • C1, C2, or C4 District mapped within, or with a residential equivalent of, an R1 through R5 District
  • The zoning lot is located within a Commercial District—or a combination of such districts—that extends continuously along an entire street frontage on the block and continues along the same frontage on at least one adjacent block, whether on the same side or the opposite side of the street
  • Along the long dimension of the Commercial District—or combination of Commercial Districts—in which the zoning lot is located, no more than 50% of the zoning lots located entirely within the district are developed primarily with single- or two-family residences (which may include commercial units) that existed in that configuration as of December 5, 2024
Option 6:
  • M1 District paired with an R1 through R5 District
Tax Lot Categories
Standard Zoning
Doesn't Meet Qualified Residential Site Requirements
Qualified Residential Site
Meets Qualified Residential Site requirements but will not be a mixed-use development
QRS - Mixed-Use (Within Greater Transit Zone)
Meets Qualified Residential Site requirements and will be a mixed-use development. Located in the Greater Transit Zone.
QRS - Mixed-Use (Beyond Greater Transit Zone)
Meets Qualified Residential Site requirements and will be a mixed-use development. Located outside the Greater Transit Zone.
This chart categorizes these tax lots into four distinct groups based on their qualification status and location.
Low-Density Zoning Floor Area Ratio Chart
Lots > 4,000 Square Feet - The Maximum Residential FAR For Any Single Dwelling Unit Cannot Exceed 0.60
Case Study #1: 24-00 seagirt blvd
Property Details
  • BBL: 4-15784-1
  • Lot Size: 26,524 Sq. Ft.
  • Zoning: R5 / C1-3
  • Building Class: V1
Commentary
The site met all the criteria outlined in Option 1, thereby qualifying it as a Qualified Development Site. If the development site is fully residential, then the developer can build up to 53,048 SF. However, if they add a non-residential component, then the developer can add 0.50 FAR / 13,262 SF of non-residential space to have a development site of 66,310 FAR.
As this is located in the Greater Transit Zone, the buildable breakdown is below:
2.00
Residential-Only Development
53,048 Buildable Square Feet
2.00
Commercial-Only Development
53,048 Buildable Square Feet
2.50
Mixed-Use Development (Residential and Non-Residential)
66,310 Buildable Square Feet
Qualifying Residential Site Checklist
Case Study #2: 1337 President St
Property Details
  • BBL: 3-1278-1
  • Lot Size: 9,044 Sq. Ft.
  • Zoning: R2
  • Building Class: W9
Commentary
The site did not meet all the necessary criteria under any of the available options, and therefore does not qualify as a Qualified Residential Site. As a result, the Standard Zoning FAR applies.
Under Standard Zoning rules, R2 districts with lots larger than 4,000 square feet are subject to a limitation: no single-family home may have a residential FAR greater than 0.60. To utilize the full 0.75 FAR permitted in the district, the lot would need to be subdivided to allow for the development of multiple single-family homes.
0.75
Multiple Homes FAR
6,783 Buildable Square Feet
0.60
Single Home FAR
5,426 Buildable Square Feet
Qualifying Residential Site Checklist
Case Study #3: 7001 Avenue U
Property Details
  • BBL: 4-8607-180
  • Lot Size: 29,300 Sq. Ft.
  • Zoning: R3-1 / C1-2
  • Building Class: V1
Commentary
According to the City of Yes Zoning Text, as this does not qualify as a Qualified Residential site, this would not be able to get the FAR boost
1.00
Residential-Only Development
29,300 Buildable Square Feet
1.00
Commercial-Only Development
29,300 Buildable Square Feet
1.50
Mixed-Use Development (Residential and Non-Residential)
43,950 Buildable Square Feet
Qualifying Residential Site Checklist
Affordability Requirement for Large (50+ Unit) Developments
Development sites with at least 50 units that qualify as residential (either mixed-use or fully residential) must reserve 20% of the units for households earning at or below 80% of the area median income (AMI). These designated units will remain permanently rent-stabilized and will automatically satisfy 485-x Program affordability requirements to obtain tax benefits
Use Restrictions for Low-Density Zoning Districts
R1 and R2
Single-Family Detached Dwellings
R3A, R3X and R4A
Single and Two-Family Detached Dwellings
R3-1 and R4-1
Single and Two-Family Detached, along with Semi-Detached Dwellings
R3-2, R4, R4B and R5
All Types of Residential Buildings
Ancillary Dwelling Units (ADUs)
An ADU is an additional dwelling unit on the same zoning lot as a single- or two-family residence, with a maximum floor area of 800 square feet. Only one ADU is allowed per single- or two-family residence on a zoning lot.
  • Flood Zones: In high-risk flood zones, ADUs are not permitted below the flood-resistant construction elevation. In areas identified by DEP with projected sea level rise flood risks, ADUs:
  • Cannot be located in basements or cellars.
  • Backyard ADUs are prohibited.
  • Backyard ADUs: Detached or attached buildings developed after adoption, where the only dwelling unit is the ADU. Backyard ADUs are prohibited in R1-2A, R2A, and R3A districts outside the Greater Transit Zone, as well as areas designated as Historic Districts by the Landmarks Preservation Commission. Backyard ADUs must have direct access via a side yard or a side lot line with a minimum width of 5 feet.
This report is part of a series by Ariel Property Advisors, offering an in-depth analysis of the new initiatives introduced under the City of Yes. The series aims to explore these programs and their potential impacts on New York City's development market.
Click here to view a high-level summary of the notable programs within the City of Yes.
Click here to request a complimentary asset evaluation and learn how the City of Yes impacts your property or development site.
By: Adam Pollack, Head Analyst - Investment Sales, Ariel Property Advisors