On a global scale, even the ravages of a pandemic did not significantly impact interest and investment in multifamily real estate, and the outlook for 2022 is on track for breaking records.1 A recent white paper we developed in conjunction with Commercial Observer is equally optimistic for the outlook on the tri-state multifamily market. Within this context, it is worth looking deeper into the conditions facing the urban and suburban markets.
In urban settings, the COVID-19-inspired fears of a permanent flight from New York City never materialized. Some thought that the pandemic would direct demand toward single-family homes to the detriment of multifamily investment. The evidence indicates otherwise, with the New York Metro drawing $14.71 billion in investment in 20212. In New York City, apartment rentals accelerated, and condominium activity is currently robust.3
Multifamily loans continue to rise even in the face of supply and demand issues coupled, in some places, with years of underproduction on the housing side which indicates that the future may be brighter. The steam is picking up over in the Garden State as well, where a 171-unit multifamily complex in highly urban Hudson County was picked up for $36.5 million back in October4 and the trend continues with more purchases in 2022, such as the nine building sells for over $6.8 million5 providing further evidence that confidence extending beyond the boundaries of NYC.
