New York Multifamily Market
Low Availability Solidifies Recovery;
Stage Set For More Employment Growth
Multifamily sector leads New York's real estate recovery. Though remote schedules prompted initial fears of a mass exodus from the five boroughs, renters demonstrated their affinity for the city during the past year, lowering vacancy below 2 percent for the first time since 2002. Tight conditions translated to an upward rent trajectory, with multifamily properties being the city's first asset class to mark a full recovery from COVID-19 losses. Development activity accelerated of late, with New York being home to one of the nation's largest pipelines. Ongoing job recovery efforts will support a positive rate of household formation, keeping vacancy tight and rents growing in the near term.