Prevailing-wage bills in Albany threaten construction projects, jobs

Long Island’s development climate has seen a tremendous influx of new projects in the last few years, and billions in new capital that goes with it.

That investment means jobs, opportunity and a stronger tax base for our communities. But that progress is at risk. A set of bills in Albany could raise construction costs so sharply that projects stall before they even start.

This past session our State Legislature passed a suite of bills that are ostensibly designed to address “prevailing wage” in various construction trades. Those three bills individually address different aspects of the construction and development industries — brownfields, off-site fabrication and concrete/asphalt hauling. They have one thing in common — they spell doom for our economy.

Projects of all kinds, such as the $468 million expansion of South Shore University Hospital in Bay Shore, the $430 million New York BioGenesis Park Cell and Gene Therapy Innovation Hub in Nassau County, and the $67 million Estella Housing in Hempstead.

These aren’t just projects on paper. They mean good jobs, better health care and more housing choices for working families. The Long Island Regional Economic Development Council's 2024 annual report found the Island’s economy grew nearly 13% since 2021, thanks in part to development like this.

Long Islanders know we need more housing. Our kids can’t afford to live here. Employers can’t attract workers. Property taxes keep climbing. Yet adding new, across-the-board labor costs could push vital housing projects out of reach.

Fair wages are already a cornerstone of Long Island construction. The average laborer earns close to $30 an hour — solid pay in an expensive region. But bills that mandate sudden wage hikes of 30, 40, even 60% would make many projects uneconomic. That’s not fairness — that’s a recipe for fewer homes, fewer jobs and fewer opportunities.

Our State Legislature often does not consider the unintended impacts of the laws they pass. The 485-x tax program they passed in 2024 for housing in New York City has a wage floor when a new building rises over 100 units. This has led to developers proposing a slew of 99-unit buildings, as this wage floor makes these affordable housing projects uneconomic to build.

The lesson is clear: When costs spiral, developers walk away. We’ve seen it before in Yonkers, where prevailing-wage mandates ground new construction to a halt. We can’t let Long Island repeat that mistake.

Unions and developers have proven they can work together successfully here. Some of our most important projects were built by labor and business in partnership. That cooperation should continue — but it must be built on practical, sustainable rules.

Long Island’s economy is on solid footing, but it won’t stay that way if new rules choke off growth. Gov. Hochul should continue to put housing first, keep Long Island competitive, and make sure we keep building for the next generation.

The bottom line is simple: Long Island needs more homes, more jobs and more opportunity. That means smart leadership in Albany and a focus on growth — not gridlock.

This guest essay reflects the views of Mike Florio, chief executive of the Long Island Builders Institute.