If there are any NYU students or alums here who can comment on this I would be very interested as well.
I’m just a freshman, but I suggest you look at the NYU 2031 plan and the case they make: http://www.nyu.edu/nyu2031/nyuinnyc/growth/the-case-for-space.php#current-profile
I personally have no idea what’s the cost benefit of all of this with regards to financial aid and faculty research, and I’d be very interested for someone to enlighten me regarding this. NYU projects a .5% annual growth rate in the undergrad/grad student body, which is not much I think.
NYU has done a lot in the past 15 years to attract star professors: http://www.nytimes.com/2003/06/08/magazine/ivy-envy.html?pagewanted=all
Their econ and math departments are definitely top notch in terms of research activity. Although I do wonder how faculty accessibility and undergraduate research have changed.