Market Research Report: New York City – Q2 2019

Slight pickup in construction unlikely to alter demand dynamics. Amid steady job growth in the New York City economy, the apartment market is booming as single-family homes remain unreachable for most residents. Following the cyclical peak in multifamily construction in 2017, development has steadily declined, prompting incredibly tight vacancy rates metro-wide. All boroughs, with the exception of Manhattan, maintain vacancy rates below 2 percent, which has begun to sponsor tremendous growth in the average effective rent in the most desirable neighborhoods. Appreciation has been most robust in rapidly evolving areas of Brooklyn and Queens, where relative affordability has drawn residents. While construction will tick up from last year, sufficient employment demand will keep the rental market tight, supporting rent growth in the low single digits.

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