Manhattan Rent Gains Highest in US
Manhattan’s multifamily market remained relatively stable at the start of the year, in the context of a slower U.S. economy, according to the latest Manhattan multifamily market report. Rents were up 0.4% on a trailing three-month basis through March, 20 basis points above the national level. On a year-over-year basis, however, rents were up 5.2%, taking the lead nationwide. Meanwhile, national rates also picked up, improving to 0.9%, as noted in the national multifamily market report. Demand in the borough was solid, as occupancy levels—at 97.7% in February—continued to outpace the national average of 94.5%.
New York City employment levels took a hit, however, with the rate of expansion 10 basis points below the U.S., to 1.9% as of December. This represented a net gain of 61,300 jobs. Unemployment stood at 5.1% in February, down 20 basis points year-over-year, and above the 3.9% U.S. rate, based on preliminary data from the Bureau of Labor Statistics. Education and health services led growth in 2023, with 114,900 jobs gained, followed by leisure and hospitality, which added 25,900. A few sectors lost a significant number of jobs, including information (-26,000), trade, transportation and utilities (-25,300) and professional and business services (-18,300).
Construction activity was slow in 2023, with only 1,210 units coming online, accounting for 0.4% of existing rental stock and significantly below the nation’s 2.8%. Activity is picking back up, however, as construction starts for the first quarter doubled year-over-year.
Read the full Yardi Matrix Manhattan Multifamily Market Report: May 2024
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