Midtown South Mixed-Use Plan Requires Inclusionary Housing in 42-Block Area

The New York City Council approved the Midtown South Mixed-Use Plan in August 2025, rezoning 42 blocks to permit approximately 9,500 new housing units in an area where housing had previously been prohibited under manufacturing-only rules.

This change lifts prior limits on office-to-residential conversions for buildings constructed before 1990 and allows floor area ratios up to 18 in key corridors. The plan also commits $325 million for streetscape upgrades and $121.9 million for garment district mitigation measures.

Housing requirements tied to resident eligibility

The plan incorporates Mandatory Inclusionary Housing rules that require 20 to 30 percent of residential floor area to be set aside for households earning 40 to 80 percent of area median income. This provision is projected to produce approximately 2,800 permanently income-restricted units across the rezoned blocks between 23rd and 40th Streets.

For Midtown residents, the income-restricted units directly address household budget pressures by expanding the supply of housing priced below market rates for qualifying households. The remaining market-rate units add overall supply in a previously restricted zone, which city documents describe as increasing housing options in the area.

Broader Midtown zoning approaches

Other Midtown districts have adopted separate zoning updates. Atlanta implemented fall 2024 street-level revisions aimed at walkability and retail access, with effects expected to appear as sites develop. Toronto enacted Zoning By-law 63-2024 in February 2024 for Midtown Apartment Neighbourhoods and brought By-law 595-2022 fully into force in August 2024, aligning rules with the Yonge-Eglinton Secondary Plan and funding infrastructure and public realm improvements.

These measures in each jurisdiction focus on land-use standards that shape where new housing and commercial space can be built. Midtown residents in the affected New York blocks will see the inclusionary requirements applied as individual sites receive approvals and begin construction.