New York Multifamily Loans and Apartment Loans
Navigating the New York real estate market requires flexible multifamily financing. Whether you're seeking a multifamily loan or an apartment loan, Select Commercial offers solutions that fit your needs with the best rates and terms. We specialize in apartment building financing that provides the best options for our clients. We will guide you through every step of purchasing, refinancing, or improving your multifamily investments.
Check out our best New York multifamily loan rates for December 21, 2024. As of this date, the 5-year Treasury yield is 4.384%, and the 10-year Treasury yield is 4.529%.
New York Multifamily Loan Rates - 12/21/24
| NY Multifamily Loans Over $6 Million | Get Free Loan Quote | ||
|---|---|---|---|
| Loan Type | Rate* | LTV | |
| Multifamily 5 Yr Fixed | 5.36% | Up to 80% | |
| Multifamily 7 Yr Fixed | 5.36% | Up to 80% | |
| Multifamily 10 Yr Fixed | 5.34% | Up to 80% | |
| NY Multifamily Loans Under $6 Million | Get Free Loan Quote | ||
|---|---|---|---|
| Loan Type | Rate* | LTV | |
| Multifamily 5 Yr Fixed | 5.80% | Up to 80% | |
| Multifamily 7 Yr Fixed | 5.74% | Up to 80% | |
| Multifamily 10 Yr Fixed | 5.73% | Up to 80% | |
New York Multifamily Loan Benefits
New York Apartment Loan rates start as low as 5.51% (as of November 23rd, 2024)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multifamily financing
• Terms and amortizations up to 30 years
• Multifamily loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation
Our Reviews
2025 New York Multifamily Loan Market Overview
As the Federal Reserve initiated rate hikes in 2022, the apartment and New York multifamily loan markets transitioned from rapid growth to a more restrained environment. By late 2024, signs of stabilization emerged; however, the outlook for 2025 remains cautious. Select Commercial Funding continues to monitor conditions closely, especially as higher Treasury yields and tightening financial conditions shape the landscape for apartment and New York multifamily loans.
Sales Market Recovery with Caution
Following a prolonged decline in sales volume and values, the apartment sales market has shown signs of thawing, though challenges persist. The Federal Reserve's September 2024 rate cut initially sparked renewed activity; however, the 10-year Treasury yield has risen to 4.469% as of November 5, 2024, adding uncertainty. While some sellers are accepting price adjustments from 2021 highs, higher borrowing costs could temper momentum.
The graph highlights the interplay between declining New York multifamily sales volume and rising Treasury yields. A peak in 2021 ($18 billion) was followed by a gradual decline through 2022 ($14 billion) and 2023 ($11.7 billion), culminating in a significant dip in Q3 2024 ($730 million). Simultaneously, the 10-year Treasury yield has climbed from 1.3% in 2021 to over 4.43% by late 2024, signaling higher borrowing costs. Select Commercial Funding continues to monitor New York apartment loans and multifamily loans, helping clients navigate opportunities in this evolving landscape.
Debt Financing and Access to Capital
Improved financing conditions in mid-2024 allowed for a slight easing in New York apartment building financing, as reflected in NMHC's survey where respondents reported better availability of debt options. However, with the 10-year Treasury yield climbing from 1.3% in 2021 to 4.43% by 2024, access to affordable New York multifamily financing remains a concern for investors navigating this dynamic market.
The graph illustrates the interplay between debt availability and rising Treasury yields. While mid-2024 saw a modest improvement in financing conditions (Debt Availability Index reaching 60), the broader trend from 2021 reflects challenges due to escalating borrowing costs. Select Commercial Funding specializes in New York apartment loans and multifamily loans, offering customized solutions to help clients overcome the hurdles posed by fluctuating debt markets.
Apartment Demand in a Shifting Labor Market
Apartment demand continues to benefit from a stable labor market, though recent economic indicators highlight potential headwinds. The ongoing retirement of Baby Boomers has created opportunities for younger generations, but elevated borrowing costs may constrain affordability. The graph illustrates the relationship between a relatively stable Apartment Demand Index (averaging 87) and rising Treasury yields, which have climbed from 1.3% in 2021 to 4.43% by 2024.
Despite challenges, Select Commercial Funding has observed steady interest in New York apartment loans and multifamily loan options, reflecting the need for housing solutions that adapt to changing labor and economic conditions. We remain committed to supporting clients as these dynamics evolve.
Absorption Rates and Occupancy Projections
High demand for apartment units has driven strong absorption rates in 2024, reaching 7.0%, slightly above the average of the previous three years. Occupancy rates, while stable, have slightly declined from 94.5% in 2021 to 94.0% in 2024, reflecting increased competition in high-supply areas. These trends impact New York apartment building financing strategies, as developers and owners must adapt to changing conditions in competitive markets.
Moody's projects that 2025 will remain a relatively strong year for demand, yet caution may prevail in regions with high inventory growth. The graph illustrates the interplay between stable absorption rates and occupancy levels over time. Select Commercial Funding offers a range of New York multifamily commercial real estate loan options to help clients manage multifamily financing needs, even in a potentially tempered demand environment.
Operational Efficiency Amidst Rising Costs
As supply increases in certain regions (such as Downtown Nashville, Austin, Seattle, and Charlotte), effective management and strong branding will be essential to attract residents. The graph illustrates the steady rise in operating costs, indexed from 100 in 2021 to 115 in 2024, while net operating income (NOI) has declined from 100 to 93 over the same period, reflecting the impact of constrained New York multifamily financing conditions.
In this environment, properties facing operational challenges may present opportunities for experienced buyers who can optimize performance with New York apartment building loan options. Select Commercial Funding collaborates with apartment lenders and multifamily lenders to provide tailored solutions, helping investors adapt and succeed amidst rising costs.
Outlook: Gradual Stabilization Amid Interest Rate Pressures
While the initial outlook for 2025 was optimistic, higher Treasury yields have introduced caution to market expectations. The graph highlights a decline in the New York multifamily loan growth index from 100 in 2021 to 90 in 2023, with a slight recovery forecasted to 94 in 2025. Simultaneously, the 10-year Treasury yield has steadily climbed from 1.3% in 2021 to an expected 4.5% in 2025, reflecting sustained borrowing cost pressures that impact New York apartment building loans and multifamily financing opportunities.
With interest rates still elevated, a more gradual stabilization may unfold. Select Commercial Funding remains focused on supporting investors with a range of multifamily commercial real estate loan options and partnerships with multifamily lenders to help manage in this dynamic market. Success will likely favor well-prepared, flexible operators who can adapt to changing conditions and capitalize on available financing opportunities.
2024 New York Multifamily Loan and Market Trends
As the multifamily market adjusts to a more predictable interest rate environment, transaction activities in the New York Multifamily Loan market are aligning more closely with historical norms. After several years of unprecedented trading volumes, last year's transactions settled at levels similar to those seen in 2014, a considerable slowdown from the peaks of 2021-2022. This shift has been primarily due to higher interest rates, which expanded the price expectation gap between buyers and sellers and slowed rent growth. Additionally, elevated vacancy rates and increased operating costs have also contributed to this trend, leading many property owners to delay selling and extend their holding periods.
The anticipated flood of properties hitting the market, driven by maturing debts and stricter refinancing rates, did not occur, leaving significant capital allocated for acquiring distressed properties largely unutilized. However, as the market adjusts to the stabilizing but elevated interest rate landscape, the New York Apartment Loan market is expected to regain momentum gradually, offering new opportunities for multifamily financing solutions.
Investors, recalling strategies from before the financial crisis, are adapting to a potentially flat or slightly declining interest rate scenario in the coming year. There is substantial capital, both institutional and private, poised for investment, which will aid in price discovery and help bridge the expectation gap. In the New York Multifamily Loan market, value creation is becoming a crucial strategy for investors dealing with negative leverage scenarios. Despite cap rates increasing by up to 200 basis points over the past year, they often remain below the cost of debt capital. This situation prompts buyers to seek rapid revenue enhancement through operational improvements, property upgrades, and other strategies, marking a return to traditional investment standards seen before the global financial crisis. By leveraging apartment building financing, these strategies are expected to remain central to investor success.
2024 Investment Outlook for New York Apartment Loan Market
- Acquisition Strategies: Last year, about 40 percent of property trades occurred in tertiary markets, which now nearly equals the 45 percent in primary markets. The New York Apartment Loan market benefits from reduced supply pressure and cost-of-living driven in-migration, trends expected to continue in 2024 as investors chase yields in smaller cities.
- Operating Costs: Operating costs are on the rise, with insurance costs up by 120 percent over the last four years due to more frequent and severe natural disasters, increased property values, and higher repair costs. Combined with a 40 percent rise in property taxes since 2018 and escalating labor costs, these factors are squeezing investor margins in the New York Multifamily Loan sector. Apartment lenders and multifamily lenders are increasingly focusing on offering creative financing solutions to address these challenges.
- Investor Generation Gap: There is a growing divide between investors who began their careers post-financial crisis, accustomed to a 2.5 percent average 10-year Treasury rate and rent growth above 5 percent, and those who invested during the 90s and early 2000s, who dealt with a 5.5 percent Treasury rate and rent growth around 3.5 percent. This disparity is shaping the strategies of investors and is likely to influence active participants in the New York Apartment Loan market this year.
Your Trusted New York Lender Source for Large Multifamily Properties Over $10 Million
Select Commercial Funding LLC specializes in providing exceptional mortgage brokerage services for large multifamily properties and high-value apartment complexes in New York. As a top commercial mortgage broker, our expertise extends to multifamily real estate financing, ensuring that investors receive the best terms and rates for their substantial investments. With our deep industry knowledge and commitment to excellence, we facilitate seamless financing for large balance multifamily properties, including loans for $10 million and up. Through our correspondent relationships with Freddie Mac, Fannie Mae, HUD, CMBS, life companies, and other multifamily real estate lenders, we can secure lower rates and higher leverage for our clients. Unlike banks and credit unions, we collaborate with a wide range of lenders to find the one best aligned with your unique scenario, ensuring you receive the most favorable rates and terms. We finance large balance multifamily loans nationwide across all asset classes. Our team’s extensive experience with large multifamily loans helps ensure that loans are funded quickly and at the lowest possible rates. We are dedicated to being the best multifamily mortgage brokers for large properties, providing expert services for high-value apartment complexes.
Tailored Solutions for High-Value New York Multifamily Real Estate Financing
At Select Commercial, we understand the unique challenges and opportunities involved in high-value multifamily real estate financing. Our customized loan programs are designed to meet the specific needs of large-scale and institutional investors, offering competitive rates and flexible terms on multifamily properties nationwide. With LTV’s up to 80% and low market rates, we provide our clients with some of the best financing terms available. Whether you are seeking financing for luxury New York apartment complex mortgages or large balance multifamily loans over $10 million, our team provides the strategic support you need to achieve your investment goals. Recognized as top multifamily mortgage brokers for high-value properties, we ensure you receive tailored solutions for prime multifamily properties. By leveraging our strong relationships with a variety of lending institutions, we secure some of the lowest rate multifamily and apartment loans for our clients, making us your go-to partner for large balance multifamily financing.
Latest Expert Insights from Stephen A. Sobin
Stephen A. Sobin, the president of Select Commercial Funding LLC, is a renowned expert in the field of multifamily financing. His insights and perspectives are regularly sought by leading industry publications. Here are his latest contributions that highlight his deep understanding of the multifamily financing landscape and his commitment to providing clear, insightful analysis on key industry issues.
Persistent Inflation and Its Effects on CRE
In an article featured in Multi-Housing News, Stephen Sobin highlighted that while inflation is still a challenge for the Federal Reserve, there are many positive signs for the commercial real estate industry. The headline Consumer Price Index rose 3.2 percent for the year ended Feb. 29, a figure 20 basis points lower than the Dec. 31, 2023, rate. read the full article.
Commercial Spotlight: Mid-Atlantic Region In this four-state powerhouse, smaller metros are thriving.
In a feature in Scotsman Guide, the Mid-Atlantic Region's real estate dynamics are explored, highlighting its resilience and growth amidst the pandemic.
Stephen Sobin of Select Commercial Funding LLC shared insights on the New York market's allure and the challenges buyers face. He noted the shift from primary urban areas to tertiary markets due to evolving preferences and financial conditions. For a deeper dive into Sobin's analysis, read the full article.
What the New Jobs Report Means for CRE
In an article titled "What the New Jobs Report Means for CRE" in Commercial Property Executive, Stephen Sobin shared his perspective on the latest jobs report and its implications for the Commercial Real Estate (CRE) sector. He highlighted the challenges posed by high interest rates and the prevailing uncertainty in the market. Sobin remarked, "Sellers aren’t selling, buyers aren’t buying... Everyone is waiting because no one knows what to expect." For a detailed analysis and more of Sobin's insights, read the full article.
Decoding "Junk Fees" in Rental Housing
In another latest contribution to Multi-Housing News, Sobin provided expert commentary in an article titled "What's Next for Junk Fees? The Industry Weighs In". He clarified the difference between legitimate fees collected for various third-party services and so-called "junk fees". Sobin emphasized the importance of borrowers understanding their rights in negotiating all loan terms and the obligation of lenders to disclose all fees.
Understanding the Impact of Federal Reserve's Decisions
In a recent article titled "How the Fed's Pause on Interest Rates Impacts Multifamily" published by Multi-Housing News, Sobin shared his expert insights on the Federal Reserve's decision to pause interest rate hikes. He accurately predicted that the Fed would not raise rates in June, citing recent bank failures and lingering concerns about a potential recession.
Stay tuned for more expert insights from Stephen A. Sobin on the evolving multifamily financing landscape.
Frequently Asked Questions
What’s going on with commercial mortgage rates as we near the end of 2024?
The Federal Reserve’s Federal Open Markets Committee cut the federal funds rate by 50 basis points at its September 18, 2024, meeting. This was the first rate cut since March 2020, when the Fed began a long series of rate hikes to curb the high rate of inflation. The Fed’s decision shows that they believe that inflation is under control and moving into the 2% range that the Fed has set as its goal. The Federal Reserve took this decisive action to prevent further declines in the labor market. The Fed has further hinted at further cuts at its two remaining meetings in 2024, followed by additional cuts in 2025. This rate cut, along with possible future rate cuts, may create positive investor demand for commercial real estate, and may provide aid for commercial mortgage customers, as well as consumers in general. We must caution, however, that the Federal Reserve cuts affect short term interest rates directly and long-term rates only indirectly. The Prime Rate, which is a short-term rate, dropped from 8.50% to 8.00% with the Fed’s recent action. However, most commercial mortgage rates are based on the 5-, 7-, or 10-year treasury rates, and not the Prime Rate. We have seen these treasury rates actually rise since the Fed took its action. On September 18th, the 10-year treasury was roughly 3.70%. Three weeks later, this rate had jumped to 4.03%. Investors are still concerned about future inflation and are adopting a wait and see attitude.
There are many different types of lenders offering a myriad of different loan products to finance the acquisition or refinance of apartment properties nationwide. These lenders include agency lenders (Fannie Mae and Freddie Mac), local and national banks, insurance companies, credit unions and private lenders.
Most lenders write apartment loans for five, seven or ten years (fixed) with a 30 year amortization. It is also possible to obtain loans that are fixed for up to 30 years, although this is not the norm. Rates are typically based on a margin over the corresponding US Treasury rate.
Lenders offer non-recourse to strong borrowers and solid properties. The borrower will be expected to have strong credit, good net worth and liquidity, and experience owning and managing similar properties. The property will be expected to demonstrate solid long term positive cash flow, be in good to excellent condition, and be located in a strong market with low vacancy rates.
Apartment loans are typically screened and pre-approved in 2-3 days. Since lenders require appraisals, environmental and property condition reports, and title, closings will usually take 45-60 days from application.
Apartment Loan Types We Serve
If you are looking to purchase or refinance a NYC apartment building, don't hesitate to contact us. We arrange financing in the city of NYC for the following:
- Large urban high-rise multifamily buildings
- Suburban garden multifamilycomplexes
- Small multifamily buildings containing 5+ units
- Underlying cooperative multifamily building loans
- Portfolios of small multifamily properties and/or single-family rental properties
- Other multi-family and mixed-use properties
Apartment Loan Helpful Articles
How to Get the Best Rate on a Multifamily LoanHow to Buy an Apartment Building
Uncomplicated Underwriting
How to Invest in an Apartment Building
Are You Shopping for an Apartment Building Loan?
How To Get The Best Rates On An Apartment Refinance
How do we help our New York apartment loan clients get the best rate and terms?
Select Commercial has excellent New York apartment building loan products and options available for owners and purchasers of apartment properties throughout the state of New York. Whether you are looking for a small apartment building loan or are looking for apartment building financing for a complex with hundreds of units, we can help you find the optimal apartment building financing to meet your apartment building loan needs. While we lend across the entire continental US, we are able to give our best rates and loan programs to certain areas that we feel are strong markets. New York is one of the states that we consider to be a premium market for apartment building loans and we actively look to originate good quality loans here for our clients. We have a diverse array of many available loan products to help qualified NY borrowers looking to purchase or refinance an apartment property. We offer apartment loans with terms and amortizations up to 30 years, recourse and non-recourse, and many options for prepayment. We typically approve apartment building loans within 1 day and usually close within 45 days of application. Our clients love our simplified application process, 24-hour pre-approvals with no-cost and no-obligation, great rates and terms, fast closings and personalized service.
Recent Multifamily Loan Closings
Whether you are purchasing or refinancing, we have the right solutions available for your multifamily mortgage loans. We will entertain apartment loan requests of all sizes, beginning at $1,500,000. Get started with a Free Commercial Mortgage Loan Quote.
New York Rental Statistics and Investor Highlights For Some Of The Areas We've Helped Secure Multifamily Financing
The rental rates for multifamily properties in New York varied widely depending on location. According to rentcafe.com, the average rent in the U.S. is $1,702 (updated May, 2023) with an average apartment size of 897 sq. ft. The average rent for an apartment in the state of New York was $2,552 with an average size of 842 sq. ft. According to the US Census Bureau, the apartment rental vacancy rate for New York is 5.1%.
The Bronx Multifamily Loan Investor Information
• As we approach 2025, the Bronx continues to see strong rental demand due to population growth and a shortage of affordable housing, making it an attractive market for a New York apartment loan.
• Diverse neighborhoods offer unique investment opportunities in the multifamily sector.
• Median rent of $1,575 makes it attractive for tenants and investors seeking New York multifamily loans.
• Expertise in Bronx multifamily financing available through Select Commercial.
The Bronx Apartment Rental Data
The median rent in the Bronx is $1,575. The average rent for a studio apartment has increased by 15% to $1,238, while the average rents for 1-bedroom and 2-bedroom apartments have remained steady.
Brooklyn Multifamily Loan Investor Information
• Brooklyn's population boom and a persistent lack of affordable housing keep the demand high for rental units, making it a prime area for New York apartment loans.
• A wide variety of neighborhoods provide diverse investment opportunities within the New York multifamily loan market.
• With an average rent of $3,724 for a 1-bedroom, the Brooklyn rental market remains lucrative for multifamily investors.
• Customized multifamily loan options are available through Select Commercial.
Brooklyn Apartment Rental Data
The average rent for a 1-bedroom apartment in Brooklyn is $3,724, for a studio apartment it's $3,515, and for a 2-bedroom apartment, it's $4,100.
Buffalo, NY Apartment Building Financing Investor Information
• Known for its rich history and vibrant culture, Buffalo offers a stable rental market as we approach 2025.
• The median rent for a 1-bedroom apartment is $1,075, an affordable choice for tenants and investors considering a New York apartment loan.
As of October 2024, the average rent in Buffalo, NY is $1,131 per month, which is 28% lower than the national average of $1,564. Rent prices in Buffalo have increased by 3.4% over the past year, indicating growth potential for those interested in New York multifamily loans.
Renters in Buffalo can expect to pay $1,015 for a studio, $1,131 for a one-bedroom apartment, and $1,389 for a two-bedroom apartment. Three-bedroom rentals average $1,467, offering investment opportunities in the New York apartment loan market.
Affordable neighborhoods like Grant Ferry, Black Rock, and North Park make Buffalo an attractive option for multifamily loan investments.
Freeport Apartment Loan Investor Information
• The Freeport market continues to see strong rental demand due to population growth and limited affordable housing options.
• Unique neighborhoods in Freeport offer a variety of investment possibilities for New York multifamily loans.
• A median rent of $1,818 is attractive for tenants and investors looking to secure a New York apartment loan.
• Expertise in Freeport multifamily financing available through Select Commercial.
Freeport Apartment Rental Data
The average rent for a 1-bedroom apartment in Freeport is $1,300, and for a 2-bedroom apartment, it's $2,650.
Hempstead Apartment Loan Investor Information
• High demand for rental properties due to population growth and limited affordable housing makes Hempstead ideal for New York apartment loans.
• Various neighborhoods offer unique investment opportunities within the New York multifamily loan sector.
• Average rent of $1,300 for a 1-bedroom apartment and $2,650 for a 2-bedroom apartment attracts both tenants and investors.
• Expertise in Hempstead multifamily financing available through Select Commercial.
Hempstead Apartment Rental Data
The average rent for a 1-bedroom apartment in Hempstead is $1,300, and for a 2-bedroom apartment, it's $2,650.
Huntington Apartment Loan Investor Information
• Continued population growth and limited affordable housing have created strong demand for rental units in Huntington.
• The area offers varied neighborhoods with significant potential for New York multifamily loan investments.
• Average rent of $2,400 for a 1-bedroom apartment attracts both renters and investors interested in New York apartment loans.
• Expertise in Huntington multifamily financing available through Select Commercial.
Huntington Apartment Rental Data
The average rent for a 1-bedroom apartment in Huntington is $2,400, and for a 2-bedroom apartment, it's $3,700.
Long Island Apartment Loan Investor Information
• As we approach 2025, Long Island continues to experience strong rental demand due to population growth and a shortage of affordable housing, making it an attractive market for a New York apartment loan.
• The area's diverse neighborhoods cater to a wide range of tenant needs, offering ample opportunities for New York multifamily loans.
• Select Commercial provides expertise in Long Island multifamily financing, assisting investors in optimizing their real estate ventures.
Long Island Apartment Rental Data
As of November 2024, the average rent in Long Island is approximately $2,654 per month, reflecting a 9% increase from the previous year. Specifically, the average rent is $2,654 for a studio apartment, $2,654 for a 1-bedroom apartment, and $2,654 for a 2-bedroom apartment. These figures highlight the robust rental demand in Long Island, making it an appealing location for multifamily property investments.
Manattan Apartment Loan Investor Information
• As we approach 2025, Manhattan's high rental demand, driven by population growth and a shortage of affordable housing, makes it a prime area for New York apartment loans.
• Diverse neighborhoods provide a wide range of investment opportunities in the New York multifamily loan market.
• An average rent of $4,614 continues to attract both tenants and investors.
• Expertise in Manhattan multifamily financing is available through Select Commercial.
Manhattan Apartment Rental Data
The average rent in Manhattan is $4,614, with studio, 1-bedroom, and 2-bedroom apartment rents varying by neighborhood, offering unique prospects for New York apartment loans.
Mount Vernon Apartment Loan Investor Information
• The Mount Vernon rental market, bolstered by population growth and limited affordable housing, remains strong as we head into 2025.
• A variety of neighborhoods in Mount Vernon provide unique opportunities for New York multifamily loan investments.
• Median rents of $1,850 for a 1-bedroom and $2,250 for a 2-bedroom apartment are appealing for those seeking New York apartment loans.
• Expertise in Mount Vernon multifamily financing is available through Select Commercial.
Mount Vernon Apartment Rental Data
The median rent in Mount Vernon is $1,850 for a 1-bedroom and $2,250 for a 2-bedroom. This steady demand presents various investment strategies for securing a New York multifamily loan in this active market.
Nassau County Apartment Loan Investor Information
• Population growth drives a high demand for rental properties in Nassau County, positioning it as a viable area for New York apartment loans.
• Multiple neighborhoods across Nassau County provide diverse investment opportunities within the New York multifamily loan market.
• With a median rent of $3,552, the area remains appealing to tenants and investors.
• Specialized knowledge in Nassau County multifamily financing is available through Select Commercial.
Nassau County Apartment Rental Data
The median rent in Nassau County is $3,552, with studio apartments averaging $2,515 and 2-bedroom apartments $4,642. These figures emphasize the demand for New York apartment loans in the area.
New Rochelle Apartment Loan Investor Information
• Heading into 2025, New Rochelle continues to see strong rental demand due to population growth and a shortage of affordable housing, making it a key area for New York multifamily loans.
• Diverse neighborhoods offer unique opportunities for multifamily investments.
• With a median rent of $2,200, the market is attractive for both tenants and investors considering New York apartment loans.
• Expertise in New Rochelle multifamily financing is available through Select Commercial.
New Rochelle Apartment Rental Data
The median rent in New Rochelle is $2,200, with studio rents at $1,600, 1-bedroom apartments at $2,200, and 2-bedroom units at $2,800. These levels highlight the value of New York multifamily loans in this area.
2024 New York City Multifamily Market: Navigating Peaking Construction and Legislative Challenges
Early Indicators Suggest Peaking Construction, Despite City's Legislative Efforts
As New York's apartment market heads toward 2025, it maintains a low 1.8 percent vacancy rate, matching a two-decade low from 2021. Although it remains one of the most active construction markets, the supply hasn't kept up with demand, pushing the need for New York City apartment loans. Mayor Eric Adams' "City of Yes" initiative aims to add 100,000 apartments over the next 15 years, but state legislation has hindered new developments, with proposed units down by 81 percent in the first eight months of 2023. This legislation underscores the importance of securing New York multifamily loans as early as 2025.
Investment Trends and Lack of Long-Term Clarity
Transaction velocity in 2023 marked the slowest pace in a decade, partly due to uncertainties in Manhattan's office sector and its impact on surrounding rental demand. Since 2022, Rent Guidelines Board increases have lagged behind inflation, making it difficult to maintain older Class B and C apartments, with over 40 percent of New York City units subject to rent control. These challenges underscore the need for New York City apartment loans and New York City multifamily loans to support the multifamily sector.
2024 Multifamily Market Forecast for New York City
- EMPLOYMENT: Job growth will reach 50,000 new roles this year, up from 30,000 in 2023, with increases in both traditional and new sectors.
- CONSTRUCTION: Completions will surpass 20,000 units for the second time in five years, adding 1.1 percent to the supply.
- VACANCY: Vacancy rates are expected to rise to 2.0 percent by early 2025, still below the long-term average of 2.6 percent.
- RENT: Average monthly rent will hit $2,912, marking the highest on record, despite slower growth since 2020.
- INVESTMENT: Investors are likely to focus on Brooklyn, where over a third of 2023's large proposals were centered, supporting demand for New York City apartment loans and New York City multifamily loans.
Poughkeepsie Apartment Loan Investor Information
• As we approach 2025, Poughkeepsie continues to see strong rental demand due to population growth and a shortage of affordable housing, making it an attractive market for a New York apartment loan.
• Diverse neighborhoods offer unique investment opportunities in the multifamily sector.
• Median rent of $1,500 makes it attractive for tenants and investors seeking New York multifamily loans.
• Expertise in Poughkeepsie multifamily financing available through Select Commercial.
Poughkeepsie Apartment Rental Data
The median rent in Poughkeepsie is $1,500 as of November 2024. The average rent for a studio apartment has increased by 9% to $1,200, while the average rents for 1-bedroom and 2-bedroom apartments have increased to $1,400 and $1,600, respectively.
Queens County Apartment Loan Investor Information
• As we approach 2025, Queens remains a diverse borough with a growing population, creating a strong demand for rental properties and making it an attractive market for a New York apartment loan.
• With a variety of neighborhoods, Queens offers unique investment opportunities in the multifamily sector.
• The median rent in Queens continues to be attractive for both tenants and investors, contributing to a robust rental market.
• Select Commercial offers expertise in Queens multifamily financing, helping investors make the most of their real estate investments.
Queens Apartment Rental Data
The average rent in Queens is approximately $1,600 for a studio apartment, $2,395 for a 1-bedroom apartment, and $2,580 for a 2-bedroom apartment as of November 2024. This data reflects the strong rental market in Queens, making it an attractive location for multifamily property investments.
Rochester Multifamily Loan Investor Information
• As we approach 2025, Rochester continues to exhibit a strong rental market driven by population growth and a shortage of affordable housing, making it an attractive market for a New York apartment loan.
• Diverse neighborhoods offer unique investment opportunities in the multifamily sector.
• The average rent for a 1-bedroom apartment is $1,240, and for a 2-bedroom apartment is $1,471, making it a profitable market for both renters and investors seeking New York multifamily loans.
• Select Commercial offers expertise in Rochester multifamily financing, assisting investors in optimizing their real estate ventures.
Rochester Apartment Rental Data
The average rent for a studio apartment in Rochester is $909, for a 1-bedroom apartment is $1,240, and for a 2-bedroom apartment is $1,471 as of November 2024. These figures highlight the robust rental demand in Rochester, making it an appealing location for multifamily property investments.
Rockland County Apartment Loan Investor Information
• As we approach 2025, Rockland County continues to experience strong rental demand due to population growth and a shortage of affordable housing, making it an attractive market for a New York apartment loan.
• The county's diverse neighborhoods offer unique investment opportunities in the multifamily sector.
• Median rent of $1,490 makes it appealing for tenants and investors seeking New York multifamily loans.
• Select Commercial offers expertise in Rockland County multifamily financing, assisting investors in optimizing their real estate ventures.
Rockland County Apartment Rental Data
As of November 2024, the median rent in Rockland County is $1,490. The average rent for a studio apartment is $2,233, for a 1-bedroom apartment is $2,330, and for a 2-bedroom apartment is $2,580. These figures highlight the robust rental demand in Rockland County, making it an appealing location for multifamily property investments.
Staten Island Apartment Loan Investor Information
• As we approach 2025, Staten Island, the least populated of New York City's five boroughs, offers a suburban atmosphere with the advantages of city living, making it an attractive market for a New York apartment loan.
• The borough is renowned for its diverse neighborhoods and rich history, presenting unique investment opportunities in the multifamily sector.
• Staten Island's multifamily market is expanding, with new developments and renovations of existing properties, appealing to investors seeking New York multifamily loans.
• Select Commercial provides expertise in Staten Island multifamily financing, assisting investors in optimizing their real estate ventures.
Staten Island Apartment Rental Data
As of November 2024, the average rent in Staten Island is approximately $1,620 per month. Specifically, the average rent is $1,530 for a studio apartment, $1,620 for a 1-bedroom apartment, and $2,123 for a 2-bedroom apartment. These figures highlight the robust rental demand in Staten Island, making it an appealing location for multifamily property investments.
Suffolk County Apartment Loan Investor Information
• As we approach 2025, Suffolk County continues to experience strong rental demand due to population growth and a shortage of affordable housing, making it an attractive market for a New York apartment loan.
• The county's diverse neighborhoods offer unique investment opportunities in the multifamily sector.
• The median rent in Suffolk County is competitive, attracting both tenants and investors seeking New York multifamily loans.
• Select Commercial offers expertise in Suffolk County multifamily financing, assisting investors in optimizing their real estate ventures.
Suffolk County Apartment Rental Data
As of November 2024, the average rent in Suffolk County is approximately $2,055 for a studio apartment, $2,445 for a 1-bedroom apartment, and $3,060 for a 2-bedroom apartment. These figures highlight the robust rental demand in Suffolk County, making it an appealing location for multifamily property investments.
Syracuse Apartment Loan Investor Information
• As we approach 2025, Syracuse continues to experience strong rental demand due to the presence of Syracuse University and several large employers, making it an attractive market for a New York apartment loan.
• The city's diverse neighborhoods offer unique investment opportunities in the multifamily sector.
• The median rent in Syracuse is competitive, appealing to both tenants and investors seeking New York multifamily loans.
• Select Commercial offers expertise in Syracuse multifamily financing, assisting investors in optimizing their real estate ventures.
Syracuse Apartment Rental Data
As of November 2024, the average rent in Syracuse is approximately $1,000 for a studio apartment, $1,156 for a 1-bedroom apartment, $1,382 for a 2-bedroom apartment, and $1,972 for a 3-bedroom apartment. These figures highlight the robust rental demand in Syracuse, making it an appealing location for multifamily property investments.
Valley Stream Apartment Loan Investor Information
• As we approach 2025, Valley Stream continues to experience strong rental demand due to population growth and a shortage of affordable housing, making it an attractive market for a New York apartment loan.
• The area's diverse neighborhoods offer unique investment opportunities in the multifamily sector.
• The median rent in Valley Stream is competitive, appealing to both tenants and investors seeking New York multifamily loans.
• Select Commercial offers expertise in Valley Stream multifamily financing, assisting investors in optimizing their real estate ventures.
Valley Stream Apartment Rental Data
As of November 2024, the average rent in Valley Stream is approximately $2,069 per month. Specifically, the average rent is $1,429 for a studio apartment, $2,069 for a 1-bedroom apartment, and $2,552 for a 2-bedroom apartment. These figures highlight the robust rental demand in Valley Stream, making it an appealing location for multifamily property investments.
Westchester County Apartment Loan Investor Information
• As we approach 2025, Westchester County remains a prime location for multifamily properties due to its proximity to New York City, making it an attractive market for a New York apartment loan.
• The county's diverse range of neighborhoods offers a variety of investment opportunities in the multifamily sector.
• With a median rent of $2,352 for a 2-bedroom apartment, the rental market is robust and appealing for both tenants and investors seeking New York multifamily loans.
• Select Commercial provides expertise in Westchester County multifamily financing, assisting investors in optimizing their real estate ventures.
Westchester County Apartment Rental Data
As of November 2024, the average rent in Westchester County is approximately $1,648 for a studio apartment, $1,934 for a 1-bedroom apartment, and $2,352 for a 2-bedroom apartment. These figures highlight the strong rental demand in Westchester County, making it an appealing location for multifamily property investments.
White Plains Apartment Loan Investor Information
• As we approach 2025, White Plains continues to experience strong rental demand due to population growth and a shortage of affordable housing, making it an attractive market for a New York apartment loan.
• The city's diverse neighborhoods offer unique investment opportunities in the multifamily sector.
• The average rent in White Plains is approximately $2,754, appealing to both tenants and investors seeking New York multifamily loans.
• Select Commercial offers expertise in White Plains multifamily financing, assisting investors in optimizing their real estate ventures.
White Plains Apartment Rental Data
As of November 2024, the average rent in White Plains is approximately $2,754 per month. Specifically, the average rent is $2,738 for a studio apartment, $2,754 for a 1-bedroom apartment, and $2,754 for a 2-bedroom apartment. These figures highlight the robust rental demand in White Plains, making it an appealing location for multifamily property investments.
Yonkers Apartment Loan Investor Information
• As we approach 2025, Yonkers continues to experience strong rental demand due to population growth and a shortage of affordable housing, making it an attractive market for a New York apartment loan.
• The city's diverse neighborhoods offer unique investment opportunities in the multifamily sector.
• Median rents of $2,346 for a studio, $2,455 for a 1-bedroom apartment, and $2,975 for a 2-bedroom apartment make it appealing for tenants and investors seeking New York multifamily loans.
• Select Commercial offers expertise in Yonkers multifamily financing, assisting investors in optimizing their real estate ventures.
Yonkers Apartment Rental Data
As of October 2024, the median rent in Yonkers is $2,346 for a studio, $2,455 for a 1-bedroom apartment, and $2,975 for a 2-bedroom apartment. These figures highlight the robust rental demand in Yonkers, making it an appealing location for multifamily property investments.
Overall, we expect the rise in borrowing costs to continue putting pressure on people to rent for longer periods. This supports the case that there will be strong demand for apartment building loans in 2023.