NYC Real Estate vs Other Major MSAs

For the first 15-20 years of my career, investors who came to New York City were mostly focused on our market. Post-Covid, we see domestic and foreign buyers alike not only consider other major US MSAs but even secondary and tertiary markets. As an investor, it’s always important to compare how a market compares to other options. Is it priced accordingly? 

New York can sometimes get a negative reputation for its regulation, but I would make the case that it has certainly been priced in. By way some of the below stats, we’ll explore how New York City is outperforming other markets:

· Office buildings in Manhattan are 76.6% as busy as they were in June 2019 – putting Manhattan significantly above the US’s 61.9% average in terms of return-to-office efforts. Office space in New York City is currently at 17.1% vacant, whereas office space across the country averages out at 19%. 

· Year to date in 2024, Manhattan has led the way with the most dollar volume in investment sales. This was followed by LA, Phoenix, Boston, Atlanta, and Chicago. The NYC boroughs collectively are 7th on the list. 

· Year-over-year investment sales growth was only eclipsed by San Jose, Minneapolis, and Nashville.

· In 1H2024, Manhattan had the second most foreign investment. Boston claimed the top spot due to investment in life sciences. Markets behind Manhattan were Phoenix, Atlanta, and LA.

· Over the last 12 months, New York’s residential rent growth was only outpaced by Boston, Silicon Valley, Northern Jersey, and DC. Multifamily vacancy in New York City currently sits at 1.7%, whereas the national average is 7.3%, despite residential rents in New York City are the most expensive in the country. 

· New York was not a top 10 market for population growth over the last 12 months. Meanwhile, four Texas cities were on the list. DC surprised with a #3 appearance. 

*source: Avison Young Market Intelligence