(To read more on the multifamily market, click here.)

NEW YORK CITY-Manhattan landlords can expect to see vacancy rates drop even as they significantly raise rental rates, according to Marcus & Millichap's Apartment Research quarterly report. This landlord market is projected to continue for the next 24 months.

"The [same] rents have been there since 9/11," says Peter Von Der Ahe, director of the National MultiHousing Group with Marcus & Millichap. "So we have five years of pent-up demand."

According to the report, rental rates will continue to rise as they have been earlier in the year, with a 7.5% jump in asking rates and a 7.8% hike in effective rents. By year's end the average asking rent is projected to be $3,412 per month with the effective rents at $3,323 per month. Effective rents in the second quarter were $3,181 per month, a 7.7% hike from the previous year.

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