Could this pocket of Midtown Manhattan become the city’s next residential hotspot?

City planners are betting big on Manhattan’s Midtown South, launching a bold proposal to rezone a 42-block area near Penn Station to address the city’s housing crisis.

The plan could bring nearly 10,000 new apartments to the heart of Manhattan, transforming the struggling office district after COVID-19 into a vibrant, round-the-clock neighborhood, according to city officials.

“It’s unthinkable that in such a central area, with such a dire housing crisis, that if you wanted to build housing here, our rules simply wouldn’t allow it,” City Planning Director Dan Garodnick told reporters in a public conference last week. .

The City Planning Department began the process this week to reimagine the stretch between 23rd and 40th streets and Fifth and Eighth streets. The move follows Mayor Eric Adams’ vision to revitalize the Midtown office market by allowing condo conversions and high-rise residential development.

The rezoning, officials say, could include up to 2,800 affordable housing units under rules that require developers to limit rents for low- and moderate-income tenants to at least 25% of new apartments.

“There’s a real opportunity to convert in a way that’s more equitable and more affordable,” Rafael Cestero, CEO of the Community Preservation Corporation, told Gothamist.

The plan takes inspiration from the transformation of the Financial District, which became a booming residential area after 9/11 with tax incentives, but critics warn against repeating FiDi’s mistakes.

Redevelopment of the Financial District did not mandate affordable housing, leaving low-income renters locked out.

Today, FiDi boasts some of Manhattan’s most expensive rents and lowest poverty rates, according to NYU’s Furman Center.

Supporters argue that Midtown South, with its proximity to major transit hubs like Penn Station and the Port Authority, is perfect for a residential revival.

“There’s so much transportation infrastructure,” Mitchell Moss, a professor of urban planning at NYU, told the paper. “It’s made for more housing.”

The proposal already has the support of key City Council members Keith Powers and Erik Bottcher, whose support will be critical when the Council votes later this year.

But not everyone is on board.

John Mudd, president of the Midtown South Community Council, called the plan insufficient to address the city’s dire need for low-income housing.

“The community is longing” for units that average New Yorkers can move into, he told Gothamist.

“They’re really talking about a drop in the bucket when it comes to housing for people who really need it.”