5 Election Takeaways for NYC Multifamily Investors
What does the election mean for New York City Multifamily owners? Will it impact values? Will rents go up or down? Our research team at Marcus & Millichap released a special report highlighting the impact that Trump’s presidency will have on multifamily owners. The election results may redefine the playing field and it is important to understand the implications involved in this governmental change.
The markets are repricing both debt and equity to factor increased government infrastructure and defense spending and preparing for the possibility of higher inflation. In this post, I’ve tried to highlight areas investors should be watching, so, let’s explore 5 election takeaways for NYC Multifamily owners.
1.Congressional gridlock will ease. Single-party control of Congress and the White House increases probability of action. Fiscal policy including tax changes, setting the federal budget and raising the debt ceiling will likely be less contentious.
2.Reduced taxes could favor investors. Reduced business and personal taxes could favor investors, but the details will matter. Potential changes to carried interest may affect developers and fund managers.
3.Short-term stock market volatility. Elevated post-election uncertainty could cause short-term stock market volatility as Wall Street re-calibrates.
4.Potential for rising inflation. Deregulation, infrastructure spending, and reduced taxes may spark economic acceleration and increase inflationary pressure.
5.Upward pressure on interest rates. Anticipation of increased government debt will place upward pressure on Treasury rates
Obviously, a wide range of factors will determine if the campaign rhetoric is put into action. But the U.S. economy now stands in its seventh year of durable but moderate expansion, supporting job creation, wage growth and consumption. Nationally, stable five percent unemployment and 5.5 million unfilled job openings point to a tight labor market and prospects of 2.0-2.5 million new jobs over the next year.
If you would like to explore any of these topics in greater detail, I have posted a link to the entire research report here:
Connect with us to stay in the loop on additional information & analysis!
Buy Peter's Book Today! Available on Amazon.
Catch up on our most recent posts here:
New York’s West Village is a coveted neighborhood for buyers, and 162 West 13th Street is a great multifamily asset in this popular area.
This corner building houses 36 rental units (32 residential and four commercial) and was previously owned by one family for many years.
NYM had an active month in October with a total of $277,468,000 in activity! This month we placed 9 deals under contract, closed $69,696,000 and listed 21 properties totaling $140,940,000.
Last month we closed on a fully free market building located at 36 West 21st Street for $4,650,000. The property closed at a 4.7% cap rate for $905 p/sf.
In order to successfully sell this building, the owner of 186 Franklin St. needed to work with a real estate team that had connections with buyers who could pay the high price for a property like this one. That’s why they went with New York Multifamily.
Our team closed on this Manhattan building in May 2019 for $37.4 million. Here’s how both the buyer and seller found what they were looking for.