The county directly north of New York City is facing a housing shortage of 112,000 units that, if not addressed, could economically wreck the area, a local research group says.
Westchester County stands to lose 8,400 to 12,000 jobs per year if developers and local officials don't meet the upcoming housing demand, according to a recent study from the Regional Plan Association. Those jobs equate to losing $533 million to $742 million in annual earnings and up to $57 billion in gross domestic product by 2040, the RPA study suggested.
In a statement, County Executive Ken Jenkins said his administration "understands that there is a real, critical need for more housing opportunities if we want to move in tandem with the development that has been occurring across the economic sector."
The southern part of Westchester is mostly a bedroom community for New Yorkers who have jobs in the Big Apple but don't want to live in the city. Sections of Yonkers, Mount Vernon, New Rochelle, Eastchester and Mamaroneck give Westchester residents a quick commute into the Bronx or Manhattan but a tad more space in their living arrangements.
Like its southern neighbor, Westchester has seen its housing shortage fuel intense demand from buyers — making homes in the area more expensive year after year. In Yonkers, for example, the median home sale price grew from $590,000 in April 2024 to $695,000 in April 2025, according to Homes.com data.
Median prices in Mount Vernon rose from $559,500 to $652,500 during that same period, while New Rochelle saw the median cost grow from $849,750 to $950,000.
Westchester is home to roughly 991,000 people, but the county only has 397,400 housing units, the RPA study indicated. The county added 26,800 housing units between 2010 and 2023, but the area will need even more as Westchester's population is expected to balloon to 1.12 million by 2040, the study found.
Climate change could damage existing stock
In a previous study, the RPA said Westchester is also in danger of losing thousands of existing homes due to rising sea levels, considering that the county is sandwiched between the Hudson River and the Long Island Sound.
Within the county, "progress has been made to create more homes in walkable, transit-oriented neighborhoods, but more must be done," Kate Slevin, RPA executive vice president, said in a statement.
Westchester needs more than 21,000 units to fill today's demand — a figure that could grow to 77,000 if the county continues building at its current home construction rate, the study suggested. If Westchester stays at its current rate, the area would need between 3,062 and 5,421 single-family homes and between 34,341 and 60,795 multifamily/rental units, RPA researchers said.
Michael Romita, CEO of the Westchester County Association, said the county has made progress on housing in recent years, but local leaders need to "prioritize smart, sustainable housing development."
"This report confirms what we’ve been sounding the alarm about: Housing isn’t just a social issue — it’s an economic one,” he said in the statement.
