IRR-New York Mid-Year Viewpoint 2015 Local Market Report - Multifamily
According to the most current NYC Housing and Vacancy Study, the entire city contains 2.2 million rental apartments of which 1.2 million are market rate; the remainder are subject to rent control guidelines. The DeBlasio administration has created concerns about future rental increases for regulated apartments. The New York City Rents Guideline Board voted to freeze rents for one year leases for rent stabilized apartments. For two year leases a 2% increase is permitted which will squeeze bottom lines. Our survey concentrates on the higher-end segment of the market rate units. While significant new construction will come on to the market in the next 36 months, extremely low vacancy rates have fostered strong absorption of new projects.
Rental rate increases have far exceeded general inflation for the past few years. However, historic high rental rates in Manhattan have been met with tenant resistance. As a result, rental increases have moderated during the past six months.
The strongest demand is for two bedroom units which can be shared by tenants, effectively reducing an individual's rent. Due to the high cost of Manhattan rents, tenant demand has shifted to the boroughs, especially Brooklyn and Queens, where Fort Greene, Williamsburg, and Long Island City neighborhoods remain hot. Mass transit access is key to demand. Recent IRR assignments include 184 Kent Avenue in Williamsburg, 80 Dekalb in Fort Greene, Mercedes House located on the upper west side, The Ventura located on the upper east side, and The Elecktra in Gramercy.
Download the full version PDF of this Local Market Report below to see the charts, graphs, and tables not included above.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.