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Despite Reports of a Tightening Market, Manhattan Multifamily Feels the Pinch of Increased Interest Rates

NEW YORK CITY-The residential sector is leveling off, says one insider, as buyers grow timid in the wake of rising rates.

By Amy Vaughn | Updated on September 13, 2000

NEW YORK CITY-While the latest statistics from the National Multi-Housing Council in Washington, DC illustrate an increased tightening of the residential market with no signs of leveling off, at least one local real estate executive sees the upward climb as about to come to a halt. Citi Habitats chairman and president, Andrew Heiberger, tells GlobeSt.com that, in his view, things can only get so tight.

Chief economist Mark Obrinsky of the NMHC shared his data through July 2000 with GlobeSt.com, figures that demonstrate the hot demand for residential real estate. Obrinsky explains that through July there were 8,156 permits issued in Westchester County, the five boroughs of New York City and Rockland County combined. The total for all of last year was 11,495; in all of 1998 there were 10,342. The number in 1997 was only 8,653.

The figures for five or more multifamily units reflect essentially the same trend, Obrinsky says. Through July there were 5,058 permits and in all of 1999 there were 6,729 permits, the highest figure in years. The Census Bureau also records absorption rates for apartments in New York versus the national average that reflect a three-month absorption rate of 85% here and 72% nationally. Over a six-month period, the absorption rate was 96% in New York and 89% nationally.

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