Over 38,000 market-rate rental units are estimated to be built in New York City by 2019. This estimate, calculated by an online real estate company called Ten-X, also claims that the majority of the newly developed apartments will be located in Queens and Brooklyn.
If the estimate is correct, developers will build nearly 15,000 units this year, primarily in Brooklyn and Queens. An additional 17,000 units will follow in 2017 in locations throughout New York City. If this happens, Ten-X predicts that the vacancy rate for market-rate apartments will increase to 10 percent in 2017, resulting in zero rent growth by 2019.
Not everyone agrees with what these findings mean for the future
Whether Ten-X’s predictions are correct is the subject of debate among numerous real estate experts. Some claim that the addition of these new market-rate apartments will not affect rent growth because there are not enough of these types of units available to meet population growth. Others say that the 421-a tax exemption expiration will result in a decrease in new construction of the apartments.
Whether market rents increase or not because of new construction, most market apartments either remain out of reach for many New York residents as unaffordable or require that tenants pay as much as 50 percent of their income for rent.
If you have questions or are in a dispute regarding a rent increase or another landlord-tenant matter, speak with a tenants’ rights attorney to ensure you protect your rights.
