Gov. Kathy Hochul’s ‘Let Them Build’ Plan Pushes for Faster Construction With Environmental Rule Changes

New York Gov. Kathy Hochul on Tuesday afternoon unveiled her signature "Let Them Build" campaign, aiming to accelerate home construction by loosening some of the state's stringent environmental regulations.  

The Democrat laid out a plan to tackle New York’s severe housing shortage and affordability crisis in her fifth annual State of the State address in Albany, NY.

"In this budget, I’m proposing a simple, common-sense update. When communities say yes to housing, infrastructure, clean energy, we are going to let them build," said Hochul. "When a town or city decides to move forward, they should not get stuck in regulatory hell."

Hochul, who is up for reelection this fall, went on to say that her administration intends to cut through red tape in a system that "has become an obstacle" by pushing up costs and limiting opportunities.

Hochul's agenda revolves around overhauling the 1975 State Environmental Quality Review Act, or SEQRA, which requires all state and local government agencies to assess the environmental impacts of new housing developments—a lengthy, costly, multistep process critics say can delay construction for years.

"This year, we're taking a hard look at environmental review processes that have not been updated in half a century," said Hochul.

As part of the SEQRA reform, most of the high-density housing projects will be exempt from having to secure an environmental impact statement, while review of all other building projects would be capped at two years.  

Projects will still be required to comply with state regulatory and permit requirements governing water use, air quality, environmental justice, and protection of natural resources, as well as local zoning and other permitting requirements.

For years, developers have argued that New York’s regulations are too restrictive, creating barriers to the construction of much needed housing—and in some cases serving as tools for municipalities seeking to thwart development.

"While there is no silver bullet for solving New York's housing shortage, reforming the environmental review process is a giant step in the right direction," says Realtor.com® senior economist Jake Krimmel. "Across the country, and for decades now, anti-housing groups have abused often well-intentioned environmental protection laws in order to block new development."

According to Krimmel, the weaponization of environmental laws adds expensive delays, which ultimately result in fewer units constructed and/or more expensive rents on those units that do make it to market.

While the economist says the full impact of Hochul's proposed reforms is not yet clear, he predicts that it will be significant, particularly if combined with other policies aimed at decreasing delay times and changing zoning laws to allow for denser building.

"For those concerned about the negative environmental impacts of new construction, policies that encourage dense new development near public transit will likely help reduce greenhouse gas emissions while also chipping away at New York's housing shortage," adds Krimmel.

Trying to change the F grade

In November, the Realtor.com State-by-State Housing Report Card gave the Empire State an F—the lowest possible grade—highlighting severe affordability challenges and minimal new-construction activity.

The report, part of the Realtor.com Let America Build campaign, evaluated how each state balances housing supply and cost, and found that New York ranked near the very bottom, combining a massive affordability gap for buyers with abysmal construction rates, resulting in tight, high-priced inventory.   

In 2023, Hochul rolled out her New York Housing Compact, proposing to build 800,000 new homes over the next decade in an effort to close the state’s supply shortage by easing zoning rules and offering developers incentives. 

However, the ambitious plan failed to advance through the Legislature due to opposition from suburban communities reluctant to see dense housing going up in their backyards. 

The governor later introduced a series of smaller-scale measures to boost construction in key transit corridors.

In her address on Tuesday, Hochul highlighted several accomplishments of her housing plan, including having over 400 pro-housing communities agree to build more housing units.

In the coming years, Hochul said her administration will invest $250 million in affordable housing and $100 million in scale-manufactured housing.

The governor's housing agenda also includes updating tax incentives for repairs for rent-regulated buildings, increasing penalties on predatory landlords, and strengthening rent relief for seniors and tenants with disabilities.

Hochul is not alone: Newly elected New York City Mayor Zohran Mamdani began his term on Jan. 1 by signing a trio of executive orders directed at expediting housing construction and safeguarding tenants’ rights.   

Outside New York, California Gov. Gavin Newsom in 2025 signed historic legislation exempting most new housing projects in urban communities from the state’s lengthy environmental review process.

Housing affordability is a national problem, and President Donald Trump has increasingly emphasized it as he seeks to address voters' pocketbook concerns ahead of the November midterm elections.

Last Wednesday, Trump wrote on his Truth Social account that he was moving to ban institutional investors from purchasing single-family homes in an effort to make it easier for first-time homebuyers to break into the market.

A day later, the president announced he directed government-backed Freddie Mac and Fannie Mae to purchase $200 billion in mortgage-backed securities in a bid to lower mortgage rates, which are currently stuck in the low-6% range.

Both proposals have drawn skepticism from experts, who have questioned their effectiveness.