The job market in New York City is still growing, but a lot less quickly than prior years. It’s no coincidence that asking rents for apartments shrank 0.9% in 2016, after increasing faster than inflation in prior years.

The job market doesn’t have to shrink for rents to drop. It can be enough if the pace of job growth slows down, according to recent analysis from Chuck Ehmann, real estate economist for Axiometrics. New York City’s job market grew by 100,000 jobs in in 2016. While that total represents more jobs created than any other U.S. city, it’s also less than the 187,000 new jobs created in 2014.

Developers often plan new projects based on job growth.  If job growth slows, demand may not be present to fill new apartment communities as they open.

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