February 13, 2017
Apartments in New York City face more downside risk than apartments in any other U.S. market, according to Equity Residential COO David Santee.
New York City is the only U.S. market where the pricing models used by Equity Residential include significant concessions to lure new residents. The real estate investment trust has not had to offer concessions yet, but some players in the market are offering three or four months rent free.
That’s because of the “increased amount of high end units being delivered” into a market where “job growth is relatively mediocre, and the biggest gains are in the lower paying sectors of education, leisure and hospitality,” said Santee, during a conference call for Equity’s Q4 earnings.
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