New York Multifamily Market
Renters Returning to Core Manhattan Zones,
Headwinds Arise for Property Upkeep Efforts
Steady return of urban activity keeps conditions tight. Vacancy remained unchanged at 1.8 percent across the five boroughs during the second quarter of 2023, marking a 21-month span during which the rate has held at this two-decade low. Conditions are still tightening in Midtown and Midtown South, as increasing office usage has brought some professionals back to central Manhattan neighborhoods. Placer.ai data indicates that midweek visits to offices in the borough reached 68 percent of the 2019 equivalent in the first five months of the year, boding well for apartment demand in neighborhoods near major business districts, particularly luxury complexes catering to well-compensated employees of traditional office-using firms.