New York already has some of the highest construction costs in the world. But one outdated state law is making it even harder to build affordable housing.

The Scaffold Law, also known as Labor Law § 240(1), was enacted in 1885. It imposes absolute liability on property owners and general contractors for any gravity-related injury, regardless of whether workers were at fault. No other state in the country has a law like this.

The result? Insurance premiums for construction projects are dramatically higher in New York. A recent analysis found the Scaffold Law adds about 7% to overall construction costs — a margin big enough to block affordable housing projects. The law diverts nearly $800 million in public funds each year to insurance and legal costs that could otherwise support housing construction and job growth.

At a time when New York is facing an urgent housing shortage, policymakers are weighing reforms that could maintain strong safety protections for workers while reducing unnecessary cost burdens that hamper new development. Updating the Scaffold Law could be one way to make new affordable housing projects more financially viable.