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New Rent Regulation: The Downfall of MF Pricing?

NEW YORK CITY—New York City has enjoyed the highest multifamily pricing in the US and presumably the world. Cushman & Wakefield's 1st Half 2015 Market Report showed that Manhattan's average capitalization rates for apartment buildings were an astonishing low 3.4% for walk-ups and 3.5% for elevators.

By James Nelson | Updated on August 04, 2015

NEW YORK CITY—New York City has enjoyed the highest multifamily pricing in the US and presumably the world. Cushman & Wakefield’s 1st Half 2015 Market Report showed that Manhattan’s average capitalization rates for apartment buildings were an astonishing low 3.4% for walk-ups and 3.5% for elevators.

According to Real Capital Analytics, these multifamily cap rates compare to other major cities as follows:  Miami 4.4%; Washington, DC 4.5%; Boston 4.5%; Los Angeles 4.6%; and Chicago at 5.7%. In fact, only San Francisco has comparable cap rates at 3.6%. Additionally, in the last four years, Manhattan’s cap rates have compressed more than any other major metro market, whereas some markets, such as Washington, DC, and Los Angeles have actually increased.

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