New York City recorded $1.44 billion in multifamily sales during the first quarter of this year, according to new data from Ariel Property Advisors. This represented a 23% year-over-year increase.
Predominantly free market building sales accounted for slightly more than two-thirds (68%) of the dollar volume in the first quarter, 68%, while rent stabilized sales accounted for a roughly less than one-third (31%) share.
The Manhattan submarket saw the greatest level of quarterly activity with $734 million in multifamily dollar volume across 44 transactions, which marked year-over-year increases of 153% and 29%, respectively. Brooklyn’s multifamily sales totaled $417.9 million, an 18% year-over-year decline, while the borough’s 118 transactions represented a 14% drop from one year earlier.
“Free market multifamily has been the dominant player in multifamily transactions; however, we have seen much more activity in rent-stabilized housing as mortgage maturities forced some selling and we believe we will continue to see that trend,” said Shimon Shkury, founder and president of Ariel Property Advisors. “The housing plan outlined by Gov. Kathy Hochul this week is mixed. ‘Good Cause Eviction’ in any form provides free-market regulation, which will negatively affect the investor. In addition, the housing plan includes a program to encourage the renovation of vacant apartments in rent stabilized buildings, but the reported details might not be as meaningful as the industry had hoped for. The good news is a new 485x tax incentive for affordable housing and extending the expired 421a program for six years, which should result in additional development to help address the city’s housing crisis.”
Photo: Emily M. Watson / iStock
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