Market Research Report: New York City – Q1 2018

Broad-based hiring and more than 8.5 million residents are driving significant net absorption in the apartment sector, particularly due to the high cost of single-family homes.  As the pace of construction soared, net absorption outpaced new supply every year since 2012, fostering a metrowide vacancy rate that reached 2 percent by the end of 2017.  Meanwhile, development will roll over from the cycle high reached last year, providing a tailwind to the overall market.  Rent growth will re-emerge as the year progresses, primarily due to a lessened use of concessions to fill few units.  However, the shutdown of the L Train in Brooklyn will foster a more selective uptake of apartments, creating uneven gains across submarkets in Brooklyn.

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