Strong Rent Growth, Slow Development
Manhattan ended the first quarter with solid growth across almost all fundamentals, as per the latest Manhattan multifamily market report Average advertised asking rents were up 0.6% on a trailing three-month basis through March, to $5,116, well above the 0.1% national rate, as noted in the U.S. multifamily market report. Manhattan also surpassed both Queens (0.4%) and Brooklyn (0.5%). Year-over-year, rents in New York City were up 5.5% overall, ranking first among the top 30 metros tracked by Yardi Matrix. Slower supply growth boosted occupancy, which saw a 20-basis-point uptick, to 98.1% as of February.
New York City employment growth stood at 2.0% as of January and was double the national figure. Meanwhile, unemployment clocked in at 4.4% as of February, according to preliminary data from the Bureau of Labor Statistics. The market added a total of 150,050 net jobs over 12 months. Education and health services far outpaced other sectors, adding 99,200 positions, followed by government (15,600) and professional and business services (14,800). Construction was the only sector to shed jobs, down 7,400 net positions.
Developers completed 1,915 units in Manhattan last year, which was 0.6% of existing stock. Volume significantly lagged the 3.5% national figure and continued a slowdown that started in 2021. Meanwhile, the borough had 12,126 units under construction as of March, as well as an additional 39,000 units in the planning and permitting stages.
Read the full Yardi Matrix Manhattan Multifamily Market Report: May 2025
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