Development is key to Long Island’s economic future.

The Housing Imperative: Why Long Island’s Economic Future Hinges on Smarter Development

Long Island isn’t just facing a housing affordability issue—it’s confronting an economic crossroads. Without a significant increase in housing supply, the region risks losing its young talent, weakening its local businesses, and stalling future economic growth.

A Crisis Beyond Affordability

At a recent panel hosted by the Real Estate Institute, industry experts echoed a now undeniable truth: Long Island needs more housing—fast. This crisis isn’t limited to subsidized or low-income housing. What’s at stake is the broader availability of market-rate and workforce housing that can support a thriving, diverse economy.

Long Island lost nearly 98,000 residents aged 35 to 55 between 2009 and 2019—a loss concentrated among prime working-age adults. During that same period, the region added 62,000 more jobs than housing units, creating a widening gap that threatens to undermine future economic stability.

The Impact on Business and Talent Retention

Employers across Long Island are already struggling to fill positions, not only in entry-level roles but also in specialized and high-skill jobs. The problem? There simply aren’t enough affordable and desirable places for workers to live. And if people can’t find housing, they won’t stick around. It’s that straightforward.

Smart Growth Is Already Working—But It’s Not Enough

Some municipalities are showing what’s possible. Towns like Farmingdale and Brookhaven have leaned into transit-oriented development and sped up approval processes, proving that progress is achievable. But these examples must become the norm—not the exception.

Too often, outdated zoning laws, regulatory red tape, and resistance to change stand in the way of progress. It’s time to shift the narrative: housing is economic development. Thoughtfully designed, well-placed housing doesn't degrade communities—it revitalizes them.

Unlocking Opportunity Through Policy and Partnerships

Local governments must adopt forward-thinking housing strategies. That includes tapping into state programs like Governor Hochul’s $100 million infrastructure initiative, identifying underused land, and making it easier for developers to invest in Long Island’s future.

But we also need to confront the structural challenges that drive up construction costs: supply chain disruptions, rising material prices, and outdated trade policies. Add to that a tangle of restrictive rental and labor regulations, and it becomes clear why so many potential housing projects never break ground.

If we want housing to be more attainable for working families, we need to reform policies that hinder responsible development—not entrench them further.

Changing the Narrative Around Development

Public skepticism around new housing often stems from misconceptions. The idea that developers are solely profit-driven ignores the economic realities of construction. If a housing project doesn’t financially “pencil out,” it simply won’t get built.

That’s why public education around development economics is crucial. Communities need to understand the real costs—and potential benefits—of smart, scalable growth.

Farmingdale: A Blueprint for the Future

Farmingdale’s transformation offers a compelling case study. What began with hesitation is now a thriving downtown with over 500 new apartments, walkable amenities, and a renewed sense of community. It's proof that development, when done right, can uplift—not disrupt—local neighborhoods.

Long Island's Choice: Stagnation or Smart Growth

Long Island stands at a pivotal moment. We can either embrace strategic, forward-looking housing development and secure our economic future—or continue to lose out on talent, opportunity, and prosperity.

The path forward is clear. Now is the time to act.