Manhattan Multifamily Report – May 2024
Supply can't catch up with demand in the borough.
Manhattan’s multifamily market remained relatively stable at the start of the year, in the context of a slower U.S. economy. Rents were up 0.4 percent on a trailing three-month basis through March, 20 basis points above the national level. On a year-over-year basis, however, rents were up 5.2 percent, taking the lead nationwide.
Meanwhile, national rates also picked up, improving to 0.9 percent. Demand in the borough was solid, as occupancy levels—at 97.7 percent in February—continued to outpace the national average of 94.5 percent. New York City employment levels took a hit, however, with the rate of expansion 10 basis points below the U.S., to 1.9 percent as of December. This represented a net gain of 61,300 jobs. Unemployment stood at 5.1 percent in February, down 20 basis points year-over-year, and above the 3.9 percent U.S. rate, based on preliminary data from the Bureau of Labor Statistics. Education and health services led growth in 2023, with 114,900 jobs gained, followed by leisure and hospitality, which added 25,900. A few sectors lost a significant number of jobs, including information (-26,000), trade, transportation and utilities (-25,300) and professional and business services (-18,300).
Construction activity was slow in 2023, with only 1,210 units coming online, accounting for 0.4 percent of existing rental stock and significantly below the nation’s 2.8 percent. Activity is picking back up, however, as construction starts for the first quarter doubled year-over-year.
