Top Northeast Markets for Multifamily Development
- Mar 10, 2021
As one of the leading regions in the U.S. when it comes to development activity, the Northeast had more than 110,000 units under construction as of February, according to Yardi Matrix. That accounts for 14 percent of the nation’s development pipeline, surpassed only by the Southwest, which comprises 16.6 percent.
Homing in on the top metros for construction in the Northeast, prevalent trends to consider are developers’ focus on well-established markets where development activity has been consistent over the past decade, as well as a growing awareness toward integrating affordable housing units into new projects. Based on Yardi Matrix data, these are the leading Northeast markets for multifamily development, equal to 87 percent of the region’s pipeline.
|Rank||Market||Units Underway (as of Feb. 2021)||Percentage of Stock|
|6||Bridgeport–New Haven, Conn.||7,769||5.9%|
|7||White Plains, N.Y.||6,102||8.7%|
Source: Yardi Matrix
Among the boroughs on our list, Manhattan ranks third—after Queens and Brooklyn—when it comes to projects underway. As of February, the borough had 5,772 units under construction, accounting for 1.8 percent of existing inventory. Last year, developers completed some 3,000 units across 18 communities.
Nearly 40 percent of the development pipeline is scheduled for completion in 2021. Douglas Development and Lalezarian Developers’ 931-unit project at 601 W. 29th St. was the largest development underway in Manhattan as of February. The partially affordable, 58-story project in Chelsea is slated for delivery in late 2023.
7. White Plains, N.Y.
The market had 6,102 units under construction as of February, equal to 8.7 percent of total stock. More than 70 percent of those are expected to come online by year-end. Over the past five years, developers have been consistent in adding new product to the metro’s inventory, with completions peaking at 1,490 units delivered in 2020 when 10 communities came online.
As of February, the largest development in White Plains, N.Y., was RXR Realty’s Church & Division Towers, a 742-unit community in New Rochelle, N.Y., slated for delivery later this summer. Located at 26 S. Division St., the 28-story project will include 20,260 square feet of retail space.
6. Bridgeport–New Haven, Conn.
Developers were working on 7,769 apartments in Bridgeport–New Haven, Conn., as of February, which accounted for 5.9 percent of existing inventory. The bulk of the development pipeline—77 percent—is expected to deliver no later than year-end. Last year, 15 communities came online encompassing 2,619 apartments.
The Curb, a 710-unit taking shape at 200 Glover Ave. in Norwalk, Conn., was the largest project underway in the metro. Building and Land Technology, the firm that developed Stamford’s Harbor Point district, is behind the three-building development, which is being built in phases. The first and second buildings opened in 2019, while the third is scheduled to deliver this summer.
The second New York City borough on our list had 9,034 units under construction, 8.8 percent of total stock. While development in Queens had picked up after hitting a cycle low in 2016, last year’s challenges dampened development activity—only five communities totaling 724 units came online in 2020.
Nearly half of the underway units are slated for delivery in 2021. While one-third of the development pipeline is comprised of fully affordable projects, developers are mainly focusing on upscale multifamily developments. G & M Realty’s two-tower 5Pointz Redevelopment in Long Island City, N.Y., was the largest project underway as of February. With developers already putting on the finishing touches, the 1,122-unit asset is slated for completion later in the spring.
As the borough with the largest development pipeline in New York City, Brooklyn had 10,684 apartments underway, equal to 7.3 percent of existing inventory. While developers added an average of 1,200 units to stock each year between 2010 and 2015, construction activity accelerated starting in 2016, with deliveries exceeding the 3,000-unit threshold every year since.
More than one-third of the pipeline is anticipated to come online in 2021. Unsurprisingly, the vast majority of projects cater to high-income earners. The largest project underway, Greenland Forest City Partners and The Brodsky Organization’s 858-unit Pacific Park – B4 Tower, includes 258 affordable units and topped out in December.
Philadelphia is the second market on our list with a development pipeline exceeding the 10,000-unit threshold—as of February, the metro had 12,323 apartments under construction, accounting for 4.1 percent of total stock. Over the past decade, development trends have been on a constant upward trajectory in the market, with completions peaking at 6,063 units delivered in 2020.
This year, deliveries are anticipated to amount to some 8,200 apartments, or 67 percent of the metro’s pipeline. The two-building Riverwalk Towers in Philadelphia’s Center City–West submarket was the metro’s largest project underway. PMC Property Group’s 612-unit development is expected to deliver in the first quarter of 2022.
Boston’s ample development pipeline encompassed 17,905 units as of February, equal to 7.6 percent of total stock. As deliveries consistently improved in the metro over the past decade, completions peaked in 2020, when developers added 8,294 units to inventory.
Although delivery timelines may shift, the bulk of underway apartments—70 percent—are expected to come online during 2021. Mirroring national trends, developments largely target high-income renters. Fairfield Residential’s 694-unit Vero in Chelsea, Mass., was the largest development underway. Full build-out on the partially affordable, two-building community is slated for spring 2022.
1. New Jersey, N.J.
As the only market on our list to exceed the 20,000-unit threshold, New Jersey ranks first among Northeast markets, with 27,264 apartments under construction, accounting for 7.6 percent of existing inventory. Deliveries in the metro peaked at 9,233 units completed in 2017, with construction activity slightly moderating following that cycle high.
Last year, developers added 5,669 apartments to inventory, while completions are expected to surpass 20,000 units this year, equal to 75 percent of the pipeline. As of February, the largest project underway was Lotus Equity Group’s 1,300-unit Riverfront Square in Newark, N.J. The multiphased development has a late 2023 delivery date.
The totals on the list consist of multifamily properties of 50-plus units researched by Yardi Matrix.