NYC Leading Market for Apartment Absorption

The New York City apartment market is flying high with solid numbers in absorption, investment sales, demand and overall fundamentals, according to CBRE.

Absorption at 17,200 was the highest in more than two decades and accounted for 15 percent of the total absorption recorded among the top 15 metro areas.

Investment sales doubled from two years ago to nearly $18 billion.

Rent growth in NYC climbed by 14.4%, accelerating over the previous four quarters as vacancy rates declined “precipitously,” according to CBRE.

“New York remains one of the most desirable areas to live in given its metropolitan allure, access to top and highest paying jobs, and some of most prestigious educational institutions in the country,” Matthew Klauer of CBRE’s New York Tri-State Debt and Structured Finance team, said in prepared remarks.

GlobeSt recently reported that rising rents and increasing interest rates have not deterred the New York apartment market.

Adam Schwartz, senior managing director, Walker Dunlop, told GlobeSt.com that there are no concessions in the market and “there is a lot of appetite from lenders on both existing stock and ground-up development … everyone is lending. So, we expect to finance several billion dollars of multifamily this year in NYC.”

Brian McAuliffe, president of Multifamily Capital Markets for CBRE, added in prepared remarks, “Strong multifamily fundamentals persist, with favorable migration trends, high household formation, and strong wage and job growth contributing to continued demand. An abundance of equity and debt capital remains available, albeit at significantly higher rates than enjoyed in the past few years.”