NYC and NJ Apartments in High Demand
A late-summer leasing push has come from students and young professionals, developers say.
According to New York City and New Jersey developers, luxury apartments were in high demand during the weeks before Labor Day as students and young professionals sought housing near their schools and businesses.
The leasing frenzy in June and July typically calms in August, but the opposite is happening this year. Rental communities from Chelsea, N.Y., to Jersey City, N.J., to Mott Haven, N.Y., saw strong traffic.
Many of these residents are dictating their search by location. Opposingly, others are being lured by over-the-top amenities that make it easier to manage a hybrid lifestyle, according to developers.
Lease signings in Manhattan, Brooklyn, and Queens rose to their highest level on record for July of this year, a 2024 StreetEasy summer leasing report shows. Mott Haven marked the highest year-over-year increase in rentals on the market, up by 85.2 percent.
On Manhattan’s west side, residents were attracted from nearby Meta, Facebook, Amazon and other tech companies’ offices. Manhattan is realizing a significant share of relocating tech talent, particularly from California.
Leasing and pre-leasing rates on the up and up
Matthew Villetto, executive vice president of Douglas Elliman Development Marketing, told Multi-Housing News that Chelsea Canvas, a brand-new ground-up rental building in one of Manhattan’s most desirable neighborhoods, leased nearly 90 percent of its units in four months. It’s convenient location and top-tier amenities have resonated with renters.
“While the building has seen immense traffic since its launch, we’ve also seen an uptick in inquiries, especially as the summer approached,” Villetto said. “With limited inventory remaining, renters want new product with high-quality design and thoughtful amenities.”
Bisby, a new Jersey City rental by developer LeFrak, surpassed 50 percent just two months after launching leasing and before move-ins began. Within three months the community reached 70 percent leased.
The ground-up waterfront tower sees a strong segment of international students and professionals willing to leave Manhattan behind (even with similar pricing) for a two-level coworking space that makes remote work easier in an apartment setting.
“Summer is typically a strong leasing season, but this year, we saw a robust spike in August traffic as many renters ramped up their search for homes that cater to a hybrid work setting and provide an easy commute to the office or school ahead of the fall,” Richard Wernick, managing director of residential leasing, LeFrak, told MHN.
Wernick continued that today’s rental market is extremely competitive. Residents value the opportunity to live on the waterfront in a new, well-appointed home with plentiful coworking areas, outdoor spaces and transportation options.
In Mott Haven, The Bruckner House is a new ground-up development offering market-rate and affordable rentals. Since launching in January, it has been over 70 percent leased, making the community a magnet for medical industry professionals.
Another ambitious development is in Hudson Yards, where Related Cos., Oxford Properties Group and Wynn Resorts have unveiled the $12 billion next phase of the mixed-use mega-project on Manhattan’s West Side. This new part will include 1,500 housing units with 324 affordable apartments.
Dubbed “Hudson Yards West,” the latest addition to the Hudson Yards neighborhood will be built atop undeveloped western rail yards between West 30th and West 33rd streets and 11th and 12th avenues.
