Following an extended interval of rent contraction, Manhattan’s multifamily market has once again picked up, pushing the average rent past the $4,100 mark. With rents rising across asset classes, demand seems to stay high, as a growing job market and the draw of New York’s most sought-after borough continue to provide enough incentives for renters. Meanwhile, although the development pipeline is well populated with projects, and deliveries have been up for the past 30 months, occupancy in stabilized properties has managed to buck the nationwide trend, rising 20 basis points year-over-year.
Propped up by a plethora of schools producing highly educated individuals, New York City’s employment market has kept improving, with Manhattan’s finance sector continuing to provide an influx of well-paid renters looking to populate the borough’s most famous neighborhoods. Construction is up across the island, as several redevelopment projects are either nearing completion or well underway.
Manhattan’s multifamily pipeline consisted of 9,000 units under construction as of July, and another 29,000 in the planning and permitting stages, all pointing to further inventory expansion. With both units and jobs coming in at a high rate, rent growth should stay tepid in the borough.