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… Read More

Improved employment growth supporting historically low joblessness. Employers added 236,000 positions in April, bringing the year’s total job creation to 820,000, which is on par with previous years in this cycle. Expanded hiring activity compared with March drove the unemployment rate down to 3.6 percent, its lowest level in nearly 50 years.

Retail sales showing consistency as year progresses. Softened consumer confidence in March had little impact on spending as core retail sales advanced 3.6 percent year over year. A second consecutive month of moderate yet steady growth can be traced to the healthy job market, rising income levels and increasing spending power. Though overall consumption grew at a stable pace, sales growth was concentrated in a few areas, including e-commerce.

Investors coming off another robust year of investment sales activity appear to be adopting a more conservative outlook, but sentiment levels point to an active 2019.

Job growth rebounds in March; pace of hiring moderating. Removed from the disrupting effects of the partial government shutdown and winter storms, U.S. employers created a combined 196,000 jobs last month, well above the 33,000 personnel who were added to payrolls in February. Employment gains for the first quarter bring the average monthly total to 180,000, down 19 percent from the first quarter of 2018. The decline in hiring is in line with the current… Read More

Retail spending slows amid economic concerns. A moderating economy became more evident in February as core retail sales advanced 2.9 percent annually, following a revised gain of 4.3 percent one month earlier. Unresolved trade tensions as well as a weakening international economy continue to weigh on domestic growth, straining retail sales in the process. Over the past few months, spending habits have been sporadic as they moved with shifting levels of consumer confidence.

Interest rates fall as Fed shifts policy outlook. At its latest meeting, the Federal Reserve signaled an end to rate hikes this year, while reserving the potential for one increase in 2020. The Fed also announced its intention to end the runoff of its balance sheet, a process referred to as quantitative tightening. These steps have coincided with considerable financial market volatility and robust demand for Treasurys, which has pushed the 10-Year Treasury below the… Read More

Amazon, Google Expansions Highlight Increasing Tech Presence, Driving Apartment Demand in Boroughs Announcements by tech giants set stage for next phase of growth in New York City. Following the recent announcements by Google and Amazon to undertake vast expansions of their office foot-print and workforce, the New York City metro has set the stage for robust growth stemming from the tech sector. While Google will be expanding in Lower Manhattan, Amazon has opted for Long Island… Read More

Opportunity Zones, areas in each state where Qualified Opportunity Funds can invest gains from other investments into real estate and businesses to defer and reduce capital gains taxes, were introduced as part of the Tax Cuts and Jobs Act in December 2017.

Persistent job growth and broad employment base support robust apartment demand. Fueled by the largest population base in the county, the NYC economy remains on solid footing. A host of industries, including a vibrant startup scene, have generated consistent job growth, boosting demand for apartments. As supply increases reached a cycle high in 20176, rent growth slowed as developers utilized incentives to fill new proprieties,s particularly along the East River in Brooklyn and Queens. The… Read More