The Multifamily Market Performance Across New York City in Q2 2024
The multifamily real estate market in New York City exhibited a mixed performance across its boroughs during the second quarter of 2024. This article delves into the specific trends and highlights observed in Manhattan, Brooklyn, Queens, and The Bronx, as detailed in the Alpha Realty Multifamily Market Report for Q2 2024.
Manhattan: Stability with Significant Gains in Large-Scale Transactions
Manhattan's multifamily market maintained a steady pace in Q2 2024, with the overall transaction volume remaining flat at 59 transactions compared to the previous quarter. However, the borough saw a remarkable increase in the dollar volume of transactions, surging by 177% quarter-over-quarter to reach $969 million. This growth was primarily driven by large-scale multifamily buildings (20+ units), where the number of transactions increased by 42.9%.
Interestingly, smaller multifamily properties (fewer than 10 units) also experienced a resurgence, with a 27.8% increase in transaction volume from Q1 2024 and a 53.3% rise year-over-year. Noteworthy transactions include the sale of a 34-unit building at 540 W 21st St. in Chelsea for $87.4 million and a 38-unit building at 175 E. 82nd St. on the Upper East Side for $114.5 million.
Brooklyn: Recovery Driven by Large and Medium-Sized Properties
Brooklyn's multifamily market showed signs of recovery in Q2 2024, particularly in large (20+ units) and medium-sized (10-19 units) properties. The number of transactions for large properties increased by 45.5%, while medium-sized property transactions saw a significant year-over-year rise of 150%. Despite a 23.3% decline in overall transaction volume compared to Q1, the total dollar volume in Brooklyn rose by 32.8% to $493 million, thanks to the high value of large-scale deals.
The Fort Greene neighborhood saw a prominent transaction with the sale of 33 St. Felix St., a 32-unit building, for $55 million. The data indicates that while Brooklyn is still recovering from earlier downturns, strategic investments in larger properties are driving market momentum.
Queens: Rapid Market Recovery
Queens emerged as the borough with the most substantial recovery in Q2 2024, with transaction volumes increasing by 69.2% compared to Q1. The total dollar volume surged by 154.5% to $193 million, highlighting a robust market rebound. This recovery was most pronounced in medium-sized properties (10-19 units), which saw a 250% increase in the number of deals and a 528% jump in dollar volume.
Large-scale transactions also showed strength, with the number of transactions doubling quarter-over-quarter. Significant deals included the sale of 137-20 45th Ave., a 149-unit building in Flushing, for $21 million, and 45-15 Colden St., a 148-unit property, for nearly $21 million as well.
The Bronx: Strength in Medium-Scale Properties
The Bronx’s multifamily market experienced a 36.8% increase in total transactions from Q1 to Q2 2024. Medium-scale properties (10-19 units) were particularly notable, with a 200% increase in transaction volume. Although the overall market size remains smaller than that of other boroughs, the Bronx is seeing gradual growth in the small-scale segment (fewer than 10 units), which now accounts for 23% of total transactions.
One of the notable sales in the Bronx included the transaction of 2468 Tiebout Ave., a 57-unit building in the Fordham neighborhood, for $25.8 million. The ongoing expansion of small-scale properties and the resurgence of medium-scale properties indicate a potential shift in market dynamics in this borough.
Conclusion
Each borough in New York City is displaying unique trends in its multifamily market, reflecting broader economic and demographic shifts. Manhattan continues to be dominated by large-scale, high-value transactions, while Brooklyn shows signs of recovery, particularly in medium-sized properties. Queens is leading the recovery charge with a remarkable increase in transaction activity, and the Bronx is seeing a resurgence in medium-scale and small-scale properties. Investors and stakeholders would do well to consider these borough-specific trends when planning their next moves in the New York City real estate market.