October 31, 2019
The New York City multifamily market experienced across-the-board weakness in the third quarter, as investors took time out to weigh the implications of Albany’s mid-June passage of new rent regulation laws, according to Ariel Property Advisors’ quarterly review.
Ariel says the statewide Housing Stability and Tenant Protection Act of 2019 took a toll on activity because the new laws severely limit the upside potential of multifamily buildings that are dominated by stabilized units.
From July 1 through Sep. 30, New York City saw 61 multifamily transactions comprised of 88 buildings totaling $1.1 billion. Compared to the year-ago period, transaction volume declined 45%, building volume dropped 57% and dollar volume slid 51%.
“We anticipate higher transaction volume in the fourth quarter based on more multifamily closings, in addition to transactions in contract that are expected to close before the end of the year,” said Shimon Shkury, Ariel’s president and founder.
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