Marcus & Millichap Predicts Record Highs for Rentals

Research firm Marcus & Millichamp brings both good news and bad news to New Yorkers–or all good news if you’re a landlord. The firm says New York employers will bring on 45,000 new employees this year, the largest hiring uptick in a decade. And with supply comes demand. Rents that plummeted to about 8% below asking a mere 2 years ago are expected to rise to more than 4% above asking with this influx of city dwellers, for an average rent of $3,790 per month.

It’s New York, so with every challenge comes an opportunity. More rent seekers means REITs and investors will jump into the game hoping to capitalize, so multi-family buildings with 20 or fewer units and deferred maintenance are expected to be selling like hotcakes, as are Class A building on the Upper East Side. Let the spending begin!

Source: The Real Deal

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