New York Metro Real Estate News

The New York-Northern New Jersey-Long Island Metropolitan Statistical Area (MSA) widened its lead as the nation’s largest apartment construction market during the first half of 2005. Permits issued for apartments (structures with five or more units) during the first six months of this year totaled 16,667 units.

The New York MSA experienced a huge 79 percent increase in apartment permit activity from the same period last year when structures with 9,342 units were approved. Apartment demand is supported by the labor market that improved further in the Greater New York area during the 12-month period ending in June. A net of more than 70,000 jobs were added by employers in the metro area. The improved local economy is driving all segments of the apartment market—rentals, condominiums and cooperative units.

Tightness exists in the rental apartment markets in New York-Northern New Jersey-Long Island metro area with vacancy rates slightly above 3 percent. Rents increase in the greater metro area average about 3.9 percent this year. One sobering fact is that while rents are rising at about a 4 percent annual rate in Manhattan, the current rents average $2,815—a level below the record high of $3,000 established in mid-2000.

Condo and co-op prices are especially strong in Manhattan. Apartments sold in the second quarter at an average price of $1.190 million, up more than 30 percent from more than a year ago. And the median at $715,000 is also up more than 30 percent. It is estimated that condos and co-ops accounted for well over half of the apartment permits in the Greater New York area during the past two years.

Detailed data for these markets and remainder of the top 60 metro areas can be found here.

by Robert J. Sheehan, National Apartment Association’s consulting economist

FOR FULL STORY GO TO: http://www.naahq.org/econ/aug05newconstruction.htm
National Apartment Association www.naahq.org

New Apartment Construction: National Top 60-First Half 2005: NYC Metro Area Continues to Lead Nation in New Apartment Construction

11/01/05

05:20:52 pm New Apartment Construction: National Top 60-First Half 2005: NYC Metro Area Continues to Lead Nation in New Apartment Construction

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