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Market Report

New York Multifamily Investment Forecast

2022 Outlook

Reopening Market Facilitates Rental Demand Growth;
Capital In-Migration Buoys Recovering Investment

Multifamily market dynamics return to pre-pandemic levels. While the metro's job recovery continues at an above national pace, total employment will have yet to surpass the pre-pandemic peak by the end of this year. In contrast to the city's slower labor recovery, multifamily fundamentals had already returned to pre-2020 values by the end of last year. A general reopening of urban amenities underscored the appeal of living in New York City and brought back some in-person jobs, helping lower vacancy across all building classes to figures comparable to before the health crisis. The average effective rent is also now above the high reported prior to the health crisis. Advancing through this year, stock expansion will modestly slow, further aiding operations and rent growth. A heavy concentration of deliveries in Brooklyn and Manhattan could weigh on local property performance if office-using firms extend return-to-workplace timelines. A higher proportion of permanent remote staff may curtail renter demand for apartments with short commutes to offices.
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