New York City Multifamily Market Report
Manhattan Renters Returning After Year Away;
Construction Keeps Pressure on Class A Units
Metro exiting challenging period. While fewer people left New York on a net basis in 2020 than in any of the previous three years, many residents did relocate out of Manhattan. A net 9,100 apartments were relinquished last year, the most of any borough. Since then, widespread vaccinations and an economic reopening have reversed this trend. More than 9,900 Manhattan rentals were absorbed through the first six months of 2021, driving vacancy down 100 basis points in that span. Going forward, the spread of COVID-19 variants could temper upward momentum. Currently, most businesses are staying open, requiring proof of vaccination among employees and customers instead of closing. This key difference in approach should mitigate many of the economic hurdles encountered in 2020.