New York Multifamily Market
Report

Class A apartments hold steady despite lower-tier pressures. Leasing momentum held firm across core Manhattan and affluent Brooklyn submarkets last year, positioning the market for steady performance as construction activity slows. Class A vacancy in Midtown and Midtown South returned to pre-pandemic levels below 4 percent, and segment rent growth neared 5 percent, supported by return-to-office mandates. Higher-income Brooklyn neighborhoods like Williamsburg and Greenpoint posted similar gains, and a sharp drop in 2026 deliveries should help maintain tight conditions despite softer expected job and immigration growth. These headwinds, however, will likely weigh most on less affluent residents and could slow leasing at Class C and rent-regulated properties. In this environment, regulatory compliance, rent collection, and expense discipline become key to sustaining performance. Manhattan operators may be better positioned to preserve cash flow, as Rent Guidelines Board data show 84 percent of rent-stabilized buildings in Core Manhattan contain free-market units, compared with roughly 40 percent in Brooklyn and 25 percent in the Bronx.