New York Multifamily Market Report

Local apartment demand resisting broader headwinds. The New York City multifamily sector entered 2023 on strong footing. Nearly as many apartments were absorbed on a net basis last year as were constructed, which stands in sharp contrast to the national trend of increasing vacancy. Overall, roughly 70,000 more apartments are occupied today in the metro than before the pandemic began, as pent-up demand to form households offset an overall retreat in the local population. Moving forward, the metro is also expected to welcome some new residents, particularly those from overseas. Declining since a 2016 peak, immigration into the U.S. began to increase again in 2021. This trend is likely to benefit Manhattan first, as a well-known cultural landmark and economic hub for high-skilled, well-compensated international professionals. Yet, this could spread to other boroughs, supporting marketwide rental demand.