Marcus & Millichap publishes 2026 NYC Multifamily Investment Forecast Report

New York, NY Marcus & Millichap has published its 2026 New York City Multifamily Investment Forecast Report.

“Multifamily assets in NYC remain in demand with most investors prioritizing free market assets. We continue to see capital shift to those assets where owners can maintain flexibility on rents and have the ability to reposition as needed,” said John Horowitz, senior managing director, chief revenue officer, northeast division. “After a few years of recalibration, the market has adjusted, and stabilized assets are now available at cap rates higher than in decades.” 

Key findings include:
• New York City is projected to add 25,000 jobs in 2026, about half the prior year’s total. This places the metro second among major Northeast markets for employment growth.

• Approximately 15,000 new units are slated for completion in 2026, a significant drop from 2025. Brooklyn will lead the pullback, receiving roughly 9,000 fewer units than last year.

• The metro vacancy rate is expected to increase by 20 basis points to 2.8 percent, which remains well below the 10-year average. Core Class A submarkets like Midtown and Midtown South continue to benefit from return-to-office demand.

• Effective rent is forecast to increase 2.1% to $3,190 per month. Softer leasing conditions and economic uncertainty will keep overall growth below 3% for a fifth consecutive year.

• Proposed rent freezes and regulatory changes are prompting more buyers to target unregulated properties, including smaller buildings and assets built after 1974. Williamsburg, Greenpoint, and Midtown remain areas of investor interest amid rent stability and infrastructure investment.

“Both new and sidelined capital is returning back into the market, especially in submarkets where rental demand has held and valuations have reset,”said Horowitz.