NYC multifamily market peaked in the first quarter of 2022

New York City leads the country’s multifamily investment market in Q1 of 2022 with the highest number of new construction deliveries and record-level absorption, according to the report released by CBRE. 

The multifamily investment volume in the United States went up 56 percent from March 2021 and reached $63 billion in total, making it the strongest quarter on record. New York City was one of the leading multifamily markets nationwide. It accounted for $17.7 billion in total investment sales volume, more than double from last year.

“New York’s multifamily sector remains one of the hottest in the country with extremely strong demand fueled by job and wage growth,” CBRE New York Capital Markets Vice President of Institutional Properties Ryan Silber told Bisnow. 

The city's new construction supply was the strongest in the country, with 5,300 multifamily units delivered in the first three months of 2022. Houston, Dallas, and Austin ranked second, third, and fourth. New construction deliveries across the country reached 292,500 units between March 2021 and March 2022, the highest number since 1987. 

The country’s multifamily sector fell to a record-low 2.3 percent vacancy rate. New York City alone absorbed 17,000 units in Q1 of 2022, significantly outpacing Houston, Los Angeles, and Dallas. The NYC multifamily market accounted for 15 percent of nearly 700,000 units absorbed nationwide in the past year. 

Overall, multifamily investments remain the most sought-after in commercial real estate. Multifamily investment sales accounted for 37 percent of total commercial real estate investment volume in the first quarter of this year. Office followed with 21 percent of sales and industrial with 20 percent. 

Resources:

“Multifamily Market Fundamentals Strengthen in Q1,” (CBRE, 2022)

“NYC Multifamily Investment Has More Than Doubled So Far This Year,” by Ciara Long (Bisnow New York City, 2022)