Numerous high-wage industries generating stable base of renter households. Powered by a diverse employment spectrum and containing more than 8.5 million residents, New York City benefits from a consistent supply of new households. Due to the extreme price of single-family housing, the vast majority of the households seek rental accommodations, particularly in the core boroughs of Manhattan and Brooklyn where prices are highest. As a result, vacancy rates in these boroughs, and broadly metrowide, have posted significant deterioration, falling to an overall 2 percent average at the end of the third quarter. While completion rates have edged higher during the past year, the sheer volume of demand will keep vacancy near the lowest levels of the current cycle.
Development led by East River locations in Brooklyn and Queens. East River waterfront locations in Brooklyn and Queens have seen a significant upswing in deliveries as builders cater to renters seeking relative discounts to Manhattan. As a result, con- ticked up significantly in Brooklyn neighborhoods struction has such as Williamsburg, Greenpoint and DUMBO. Meanwhile, Long Island City in Queens has also benefited, with completions soaring to meet robust demand. Elsewhere, builders are focused on projects in transitioning neighborhoods such as the Far West Side in Manhattan and the South Bronx. Deliveries will peak in 2017, prompting a more robust environment in the years ahead.
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