New York City metro area apartments are projected to experience the fastest rent growth in three years, thanks to tight supply and solid employment gains, Marcus & Millichap said in its 2025 New York Multifamily Investment Forecast Report. Average effective rents are expected to reach $3,090 per month​.

Completions are projected to dip slightly, with inventory growth of 9.9% representing one of the slowest rates nationwide and consistent with the metro’s eight-year trend​. Although vacancy may inch up due to higher-end properties, the metro-wide rate will remain below the historical average at 2.1%, according to the report​.

“New York City’s multifamily market is adapting to economic shifts and significant regulatory changes,” said John Horowitz, SVP, Northeast division manager. “With rising expenses and limited ability to increase rents, rent-stabilized assets remain a challenge to operate. Nonetheless, there remains strong demand from investors with a long-term horizon and a faith in NYC. For all other apartment assets, with record-low vacancy rates and rents rising at their fastest pace in years, investors who act strategically can secure long-term gains in one of the nation’s most resilient markets.” 

He added, “New York City remains one of the most sought-after multifamily markets in the world, and 2025 is shaping up to be a pivotal year for strategic investment.”