Why FiDi Keeps Adding Apartments but Almost No New Condos

From January 1 through September 21, 2026, One Wall Street recorded 16 condo sales, according to the New York Post. The Post counted 168 completed sales on city records out of 566 apartments brought to market since 2021. In that same period, a few blocks east, former office towers added hundreds of rental apartments. The Financial District is getting more housing, but nearly all of it is for rent. A state tax incentive explains most of that. It also shapes what a condo buyer in FiDi can choose from over the next few years.

The rule that decides what gets built

Most of FiDi's new housing comes from turning offices into apartments. Those projects are governed by Real Property Tax Law § 467-m, which New York City's Department of Housing Preservation and Development administers through its Affordable Housing from Commercial Conversions program. The HPD program page says plainly who qualifies:

"Eligible Multiple Dwellings must be operated as rental housing."

The rest of the program follows from that rule. At least 25% of the units must be affordable rentals. At least 5% of those affordable units must be set at 40% of area median income. The affordable units can average no more than 80% of AMI and remain permanently rent-stabilized. Projects must start after December 31, 2022, and by June 30, 2031, and finish by December 31, 2039.

The tax break is also set to shrink, giving developers a reason to start soon. Under HPD's final rules, Manhattan projects south of 96th Street get up to three years of full exemption during construction. After that, a 90% exemption phases out over five years. That 90% period lasts 30 years for projects that start by June 30, 2026; 25 years for projects starting by June 30, 2028; and 20 years for projects starting by June 30, 2031. The first deadline passed in June. A FiDi conversion that breaks ground now falls into the 25-year tier, so a developer with an empty office building has a reason to start before 2028.

An office building converted under this program cannot become a condo building and keep the tax break. In FiDi, where the older office towers are the main supply of new housing, the program steers that housing toward renters.

Where FiDi's new apartments are coming from

The Downtown Alliance's Q2 2026 Lower Manhattan review counts 37,283 apartments in 351 residential buildings. Another 4,211 units are under construction in eight buildings, and 6,915 more are planned. Of the units under construction or planned, 68% come from office-to-residential conversions and about 71% are slated to be rentals. The largest conversions in the neighborhood show how that works out:

These buildings are designed to compete for tenants. New York YIMBY reported that Pearl & Pine's amenities include rooftop terraces, an outdoor pool, a two-story fitness center with an infrared sauna and hot and cold plunge, a pickleball court and a podcast suite. At Wrey's launch in May 2026, the New York Post reported asking rents of about $4,500 a month for a studio, $7,600 for a one-bedroom, $11,700 for a two-bedroom, and $12,000 for a three-bedroom.

The affordable units have their own process. New York YIMBY reported that the October 2026 lottery at 1 Gouverneur Lane offers 162 apartments to households earning 40% to 100% of AMI, with monthly rents from $1,056 to $2,823. The pipeline is still growing. The Alliance's Q2 review lists a new 220-apartment conversion at 17 Battery Place by The Moinian Group, also under 467-m, with 25% permanently affordable and completion set for 2027.

The condos are being built north of Chambers Street

The Alliance figures say 29% of the Lower Manhattan pipeline is condos, but most of that is outside FiDi. The same Q2 review lists The Rabsky Group's planned luxury condo project at 267 Broadway in Tribeca. The Real Deal reported in September that 101 Franklin Street, a planned 72-unit condo conversion in Tribeca, is expected to be completed in 2028.

For FiDi itself, The Real Deal's September 21 pipeline report cited a development-marketing forecast showing no new major condo buildings in the Financial District from 2026 through 2029. The same forecast has Downtown condo deliveries falling 10% over that period. FiDi's rental stock is growing, and its condo stock is not expected to grow through 2029.

What a FiDi buyer can choose from

With no new towers on the way, FiDi condo buyers can choose from three groups of homes.

1. Unsold sponsor units in established new developments. The Real Deal reported that Manhattan had about 2,800 new-development units left at the end of August 2026, the lowest total since 2014. It added that many of them sit in buildings on the market for years, naming One Wall Street and 125 Greenwich. More than 60% of that remaining inventory is in the Financial District and Midtown.
2. Boutique conversions sold as condos. The Diamond Exchange at 14 Maiden Lane is a completed building with nine full-floor homes, and its September 2026 sales announcement put starting prices just under $2.6 million.
3. Resales. These are apartments in buildings that sold out years ago, now coming back to market one at a time.

The new-development sponsor units are both the largest group and the slowest to sell. Records show the effect at the unit level. A one-bedroom on the 77th floor of 125 Greenwich closed on September 10, 2026 for $1,915,000, about 5% below its original asking price of $2,010,000. Another unit in the same building went into contract on August 17, 2026, after 161 days on the market, and its record shows a $115,000 price reduction.

How a fixed condo supply changes the decision

The citywide market has been moving in the opposite direction. Using Marketproof data, The Real Deal reported that from April to September 2026, new-development contracts fell 26% from a year earlier while resale condo contracts rose 12%. In its Q3 2026 coverage, the outlet reported Manhattan's combined co-op and condo median at $1,250,000. That was up 5.9% from a year earlier and a record for the second straight quarter. It also reported listing inventory below its 25-year average.

• Prices in FiDi have more room to move. Across Manhattan, buyers are competing for scarce condos. In FiDi, much of the unsold inventory has been on the market long enough to show price reductions in the public record. Review days on market and a unit's price history before making an offer.
• Future resale competition is known. With no major new FiDi condo buildings forecast through 2029, someone who buys now and sells in a few years is likely to compete with leftover sponsor units and other resales, not a brand-new tower.
• The neighborhood keeps adding residents. Each conversion brings hundreds of households to blocks that were mostly offices, along with buildings like Pearl & Pine that market amenity floors to them.
• Owners who rent out a condo face more competition. An owner who plans to lease a FiDi unit will compete for tenants with thousands of new rentals that come with pools, fitness floors, and lounges.

This post explains how a tax program and a forecast shape supply. It is general information, not legal, tax, or financial advice, so please check how any program or purchase applies to you with the right attorney, accountant, or lender.

A few questions buyers ask about FiDi's conversions

Why don't developers convert FiDi offices into condos instead? They can, but the 467-m tax exemption only applies to buildings "operated as rental housing," per HPD. The large conversions in the Alliance pipeline have been rental projects.

Is any new condo building opening in FiDi? The Diamond Exchange at 14 Maiden Lane is complete, with nine full-floor homes offered for sale as of September 2026. The Real Deal's forecast shows no new major FiDi condo buildings through 2029.

How many apartments are still unsold at One Wall Street? The New York Post counted 168 recorded closings out of 566 apartments offered since 2021, as of September 21, 2026. That count excludes contracts that have been signed but not yet closed.

If you're considering a Financial District condo, Darrell Williams can review a unit's price history, how long it's been listed, and how it compares with nearby sponsor inventory, so your offer is based on the building, not just the neighborhood median. Schedule a Consultation to go through the FiDi buildings on your list.