Rental availability falling despite rapidly expanding pipeline. Although builders have added more than 26,000 apartments since the beginning of 2016, rental demand has far outpaced supply growth as tenants throughout the Tri-State area seek out affordable options. Vacancy has contracted meaningfully in this environment, falling below 4 percent as the spread between the New York City boroughs and comparable options can exceed $3,000 per month in some cases. Although supply gains will reach a cycle high this year, continued employment growth will keep net absorption elevated, fueling another year of rent growth that surpasses the rate of inflation. Hudson County rates will eclipse the regional average, underpinned by renter demand from residents making the easy commute to employment hubs in Lower and Midtown Manhattan.