Queens Multifamily Report – January 2023
Occupancy and rents were both up going into 2023.
Queens rent evolution, click to enlarge
The Queens multifamily market saw demand maintain relatively strong levels this year. Overall, rents were up by 0.6 percent on a trailing three-month basis through November, 70 basis points above the U.S. rate, to $2,883. Steady demand, mostly in the upscale segment, resulted in occupancy growth, even as the rate fell across most of the country. In the 12 months ending in October, Queens’ occupancy rate climbed 30 basis points, to a strong 98.7 percent.
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Queens sales volume and number of properties sold, click to enlarge
New York City employment expanded by 5.8 percent in the 12 months ending in September, with 359,200 jobs added. This was 160 basis points higher than the U.S. rate of growth. Meanwhile, unemployment clocked in at 5.9 percent as of October, according to preliminary data from the Bureau of Labor Statistics. Professional and business services led growth in the city, with 83,200 jobs added, representing a 7.5 percent expansion. Statewide, job growth will likely be impacted by Micron’s historic $100 billion investment in a new semiconductor plant in Syracuse. An initial $20 billion is projected to be invested by the end of the decade. Following completion, the factory is expected to generate more than 9,000 permanent positions, as well as about 40,000 jobs during development.
Queens: Image by Alex Potemkin/iStockphoto.com
Construction activity maintained a positive trend since 2020. In 2022 through November, Queens added 2,343 units, or a 2.2 percent expansion of existing stock, 20 basis points higher than the U.S. rate. The borough had an additional 10,764 units underway.
