For years, I’ve been saying that the best way to lower housing costs is to simply build more apartments. And now, New Rochelle, a suburb of New York City, has gone and proved the point for all of us.
While much of the country has seen skyrocketing rents, New Rochelle took a different path: it cut red tape, welcomed new development, and added thousands of new units. The result? Rents in New Rochelle are basically flat — just 1.6% higher than they were in 2020. Compare that to places like NYC or Jersey City, where rent has shot up by 25% or more. In fact, between 2020 and 2023, New Rochelle’s median rent actually went down 2%, even as national rents surged into double-digit increases.
How’d they pull it off? Simple: they made it easier and faster to build housing. The city streamlined approvals, offered tax incentives, and standardized zoning. If a developer met the guidelines, they were guaranteed a 90-day approval — no endless hearings, no NIMBY stalling. That kind of certainty brought in big investments: one developer alone (RXR) invested over $1 billion, and the city has seen $2.5 billion in total new development.
Since 2015, New Rochelle has added over 4,500 apartments and has another 6,500 in the pipeline. That’s a 37% increase in housing stock — and it’s worked. Instead of trying to “solve” the affordability crisis with rent control or freezes (which only make the problem worse), they expanded supply. More units = less pressure = stable prices. Just like basic economics teaches.
Of course, not everyone loves the change. Some longtime locals complain about construction noise, parking issues, or the newcomers who live there but still work and spend money in NYC. But here’s the thing: the city has used developer fees to fund public benefits — infrastructure upgrades, food services, even down payment assistance for local buyers. And 10% of all new apartments are set aside as affordable units.
Even better, the city’s inclusive growth has welcomed new residents — many of them middle-income, Black, and Latino families — fleeing NYC’s high prices. These are teachers, young families, people who couldn’t afford to stay in the city and now have a real place to call home.
So yes — there are always trade-offs. But if we’re serious about solving the housing crisis, the lesson is clear: stop blocking apartments and start building them. New Rochelle did it. The rents dropped. It’s time the rest of us caught up.