July 26, 2025
There’s been a lot of buzz lately about the Interborough Express (IBX) — a proposed light-rail line that would connect Jackson Heights in Queens to Bay Ridge in Brooklyn.
For New Yorkers tired of Manhattan-centric commutes, this could be a game changer. But for us in real estate, the bigger question is: will this project light a fire under NYC’s sluggish housing development?
Governor Hochul’s approval of $2.75 billion in funding — half of the total projected cost — is a major step forward. And let’s be honest, when you have a plan that could cut commute times across outer-borough neighborhoods and link 17 subway lines, 51 bus routes, and the LIRR, you’re not just building transit. You’re building opportunity.
According to the New York Building Congress, we could see over 70,000 — potentially even 100,000 — new homes built within a half-mile of IBX stops over the next decade, if zoning changes are made. That’s a massive leap when you compare it to rezoning proposals like Long Island City, which only aim to add around 14,700 units.
But here's the catch: much of this development hinges on local politics. The IBX route crosses a patchwork of neighborhoods — from industrial zones to low-density, suburban-style communities.
And some of the City Council reps along the line voted against the City of Yes, Mayor Adams’ zoning reform aimed at boosting housing production citywide. That resistance will slow things down unless there’s a shift in leadership or mindset.
From a broker’s perspective, this could eventually unlock new territory for development deals, investment plays, and first-time buyer opportunities in areas once dismissed as inaccessible or stagnant. Places like Flatlands and Middle Village could go from “forgotten” to “up-and-coming” — if the zoning and affordability puzzle is solved.
Early adopters are already planting flags. One example is BKLN Yards, a 270-unit project being built right above the rail line in Borough Park. About 30% of the units will be below market rate.
The developer, Studio V Architecture, spent a decade just to get approvals — a reminder that without streamlined rezoning, most of the projected housing won’t break ground anytime soon.
The Interborough Express has the potential to transform outer-borough living and housing development in NYC. But without the political will to support zoning reform and safeguard affordability, it could be another missed opportunity.
For now, real estate pros should watch the zoning landscape closely, build local relationships, and be ready to move when the tracks start to lay.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
