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New York City has announced more than $400 million for the revitalization of Manhattan’s iconic Fifth Avenue.
Fifth Avenue, located between Bryant Park and Central Park, is home to a variety of luxury brands from Prada to Balenciaga, bringing in millions of visitors each year. Despite its popularity, the famous shopping strip has yet to be redesigned in its 200-year history. Crowded sidewalks and heavy traffic have hindered the area’s walkability.
City officials say the outdated layout doesn’t match the area’s economic importance. Mayor Eric Adams’s fiscal year (FY) 2026 budget puts $250 million toward a transformation of the busy avenue, bringing total funding to more than $400 million when combined with $153 million already allocated for the project.
The goal of the initiative is to develop a more pedestrian-friendly Fifth Avenue. Officials are planning to widen sidewalks by 46%, reduce traffic lanes from five to three, implement stormwater resilience measures and add green infrastructure, including more than 230 green planters, improved lighting and new benches.
Fifth Avenue has been the target of multiple recent improvements, beginning with a transformation of the Tiffany & Co. flagship’s interior in 2023 that carried a price tag ranging up to $800 million.
Mayor Adams said he envisions the revamped Fifth Avenue as a world-class boulevard, comparable to the Champs-Élysées in Paris. The mayor said the project will pay for itself within
5 years through increased sales and property tax revenues. Officials see the infrastructure overhaul as an economic stimulus that can create jobs, boost tourism and increase local real estate values.
The project is made possible in part by a coalition between New York City and the Future of Fifth Partnership, a public-private partnership (P3) including the Fifth Avenue Association, the Grand Central Partnership, the Central Park Conservancy and the Bryant Park Corporation. Funding and design come from multiple stakeholders, underscoring the growing importance of P3s in shaping large-scale infrastructure planning.
Schematic design is expected to be completed by summer, with a public presentation to the Public Design Commission. Construction is expected to start in early 2028.
Image by chowbins from Pixabay
