Multifamily market had its worst year since 2011

City’s 290 deals totaled less than $7 billion

New York /
Jan.January 27, 2020 11:00 AM
The total dollar value of deals in 2019 dropped 40 percent from the year before to $6.91 billion (Credit: Unsplash)

The total dollar value of deals in 2019 dropped 40 percent from the year before to $6.91 billion (Credit: Unsplash)

It was a horrible year for New York’s multifamily market.

The total dollar value of deals in 2019 dropped 40 percent from the year before to $6.91 billion, the market’s lowest total since 2011, according to Bloomberg, citing data from Ariel Property Advisors. There were 290 deals overall, a decline of 36 percent and the first year since 2010 with fewer than 300 deals.

The state’s new rent law was likely the main culprit, as the value and profit potential of properties with rent-regulated units were thrown into doubt by a slew of new restrictions.

More than 60 percent of the units that traded in Manhattan below East 96th and West 110th streets last year were market rate, and buyers paid $758,217 per unit on average, an increase of 14 percent from 2018.

Deals for rent-regulated buildings largely went for a fraction of that and for less than they did a year earlier. Prices for rent-regulated units in Queens dropped 7.7 percent to $276,261 per unit, and in the Bronx, they fell 7.1 percent, from $185,006 in 2018 to $171,855 last year. [Bloomberg] — Eddie Small


Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
Here’s what the $10M-$30M NYC investment sales market looked like last week
Here’s what the $10M-$30M NYC investment sales market looked like last week
Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)
New NYC rent law “beginning to shut down investment”
New NYC rent law “beginning to shut down investment”
Gov. Kathy Hochul (Getty, iStock)
With 421a dying, apartment project financing “has come to a stop”
With 421a dying, apartment project financing “has come to a stop”
1277 East 14th Street, 45-57 Davis Street and 575 Grand Street (StreetEasy, Google Maps, iStock)
Mighty Midwood bookends top outer-borough loans
Mighty Midwood bookends top outer-borough loans
Brookfield's Brian Kingston (Brookfield, Brookfield Asset Management, Public domain, via Wikimedia Commons, Google Maps, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Brookfield’s $25M Queens warehouse deal tops another slow week for i-sales
Brookfield’s $25M Queens warehouse deal tops another slow week for i-sales
Midwood's John Usdan with Candela Tower (Midwood, Candela Tower)
Midwood closes on $102M West Village property, plans renovations
Midwood closes on $102M West Village property, plans renovations
NH Investment & Securities CEO Jeong Young-Chae in front of 275 South 5th Street in Williamsburg (Douglas Elliman, Wikimedia Commons/United States Mint, Getty Images, iStock)
Pile of dimes: Korean investor poised to purchase Williamsburg rental
Pile of dimes: Korean investor poised to purchase Williamsburg rental
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...