Manhattan Multifamily Report – May 2023
The borough sports one of the country's strongest gains.
Manhattan started 2023 with solid fundamentals, despite the nationwide economic slowdown. Year-over-year, rents in Manhattan were up 7.8 percent as of March, to an average of $4,631, with growth still outpacing most major metros. Demand remained positive, and occupancy rates for stabilized assets were unchanged from a year ago, at 97.5 percent as of February—240 basis points above the overall U.S. figure.
New York City job growth remained above the national average throughout 2022, but a slowdown started in the first quarter of 2023. The city regained 289,500 jobs across all sectors last year, representing a 5.0 percent expansion. Although this was 130 basis points above the national rate, job growth slowed down from the 6.0 percent rate recorded in July 2022. According to the NYC Economic Development Corp., the city’s private sector has returned to 99.5 percent of pre-pandemic job levels. Education and health services led job growth, with 86,700 positions gained and a 5.6 percent yearly expansion.
Developers brought 2,231 units online in 2022, representing a 0.7 percent expansion of stock—160 basis points below the U.S. rate. Although completions improved from the previous year, they remained below the borough’s five-year average. Multifamily investment has ramped up considerably, with $4.9 billion in sales last year—the highest amount since 2015.