Multifamily Housing Has Promising Future
Certainly, any time that growth is expected, especially after a few rough years, it’s good news for the real estate sector. At the moment, investors and business people are reporting that they expect the New York City Multifamily housing market to do well both in the short term and in the long term.Those in the know expect the multifamily vacancy rents to decline in 2011, while the rents will increase 1.4%, particularly in the major metropolitan areas.
Manhattan, in particular, is expected to have a rent growth of about 6%. The Bronx, where there has been an increase in building activity, has seen rent increases of 3.4%. It is expected that the low vacancy rates will continue there through 2011. Northern Brooklyn, which has often been a strong renters’ market, will see a drastic increase in rent growth. Interestingly enough, certain areas such as Stuyvesant, Crown Heights and Bushwick are not expected to have increased growth.
In general, New York has seen a very tight housing market, even during the recession of recent years. However, as reported by the NAR, Commercial Real Estate Quarterly Market Report and by the Marcus and Millichap Apartment Research Market Update for the Fourth Quarter 2010, all of these areas will show a sharp rise in interest. While potential rentors will not find these statistics comforting, property owners and lenders will certainly find these facts reassuring and invigorating.