As we move further into 2023, we are getting a better idea of what the remainder of the year will look like for the NYC multifamily market. To figure out what the future holds it’s often helpful to study the past. I’ve assigned a “theme” to each year: 2019 = HSTPA; 2020 = COVID; 2021= revitalized economy; 2022 = rising rates; And 2023 = decision making.

2022 finished much slower than it started with Q4 bringing a lot of uncertainty and trepidation to the market. Brokers woke up every Monday morning not knowing which deals would sign and close and which deals would fall apart. Calling a buyer on a Monday was like calling the doctor for your test results – you knew you had to do it, but you were nervous with what they might say. But alas, 2022 is in our rearview mirror it’s time to look at 2023 and make some predictions with where our business is headed.

Future values in New York will not be tied only to interest rates and rent stabilization. There’s another piece to the pricing puzzle that doesn’t have to do with upside in rents, NOI, rising expenses, or location. It’s compliance.