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Despite the growing economic turmoil, the real estate market in the US is still strong. This year, the total revenue from this market was around $255 billion, which is 4.44% up from last year. (Source: YCharts)
The inflated housing price might make it difficult for average consumers to purchase their dream home, but that's a different story for investors.
And if you want to invest in the multifamily market, there's no better place than New York.
With that in mind, let's dive into this article and discuss everything you need to know about the multifamily investment market in New York State.
Things to Consider Before Investing in the NYC Property Market
Multifamily investment generally refers to buying properties with multiple units to maximize rent profits. Since anyone investing in the multifamily market wants a greater return, it is essential to consider the market's state from a broader perspective.
Let me explain.
A multifamily property needs to provide a steady stream of rental income.
We will not know whether the investment would be profitable if we look at the market's rent growth or property sales.
We focus on adequate revenue, determined by occupancy rate and effective rent. This allows us to better understand the profit the landlords make.
According to Moody's reports, the adequate revenue per unit in the Long Island, NY, market is around $2334.
And that's not all!
If we compare other multifamily markets, like Orange County in California or Austin, Texas, it becomes clear why many people are looking at NY for investments.
| State | Market | Effective Revenue in 2024 |
| New York | Long Island | $2334.72 |
| Rhode Island | Providence | $1578.19 |
| California | Orange County | $2293.73 |
| Texas | Austin | $1268.37 |
| Oklahoma | Tulsa | $756.69 |
As you can see, New York is an ideal choice as it has one of the highest adequate revenue per unit in the US. The multifamily property sales in NY were also up by 23%, which is a perfect sign. (Source: CRE Daily)
Here are some other important facets you should consider before investing in this market:
- Cost of entry.
- Financing options.
- Tenant demand.
- Taxes and regulations.
- Property management and repair cost.
Real Estate Trends in NY Multifamily Market
Let's examine the YTD changes in the effective revenue per unit for the New York multifamily market.
| Effective Revenue in 2023 | Effective Revenue in 2024 | YTD Change |
| $2303.09 | $2334.72 | +1.4% |
Top Multifamily Investment Markets in NY
New York is a much more elusive multifamily investment market than any other state in the US, primarily due to its ever-increasing property prices and rental profits.
And this market doesn't just revolve around New York City.
From suburban enclaves to up-and-coming cities in Upstate New York, several multifamily markets are considered. Such as:
Looking for a Realtor Referral in NY?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
1. New York City Boroughs
Although the price point is higher, NYC boroughs can still provide some of the most robust ROI for multifamily investments.
Each of New York City's five boroughs—Manhattan, Brooklyn, Queens, The Bronx, and Staten Island—offers unique neighborhoods, varying property types, and diverse rental returns.
For example, Manhattan is the most premium market, while the Bronx is the most affordable.
Manhattan is known for being one of the most expensive real estate markets in the world. Multifamily properties in this area, especially in the Upper West Side, can be listed anywhere from $5 million to $100 million, depending on the type of building and its location. (Source:Realtor.com)
However, it also comes with equally high rental yields.
One-bedroom apartments in Manhattan typically rent for around $4,000 per month. Larger multifamily units, such as duplexes or triplexes, can command rents of $8,000 to $15,000 per month per unit, particularly in premium neighborhoods like Tribeca.
Furthermore, neighborhoods like Greenwich Village typically have smaller buildings with 5-12 units, often without elevators. In contrast, high-rise luxury buildings in the Financial District or Midtown offer between 10 and 100+ units.
Let's take a look at other NYC boroughs and their multifamily properties:
Broo$3,000 per month forn-
- Property prices Typic$5,000+ per month for multi-family units in neighborhoods like Williamsburg, DUMBO, and Park Slope.
- Rent rates: $3,000 per month for one-bedroom apartments, $5,000+ per month for multifamily units.
- Property types: Brownstones and townhouses(Bedford-Stuyvesant and Brooklyn Heights), mid-rise buildings(Williamsburg and Downtown Brooklyn).
Queens-
- Property prices Typically range from $1 m$2,700 per month to $5 million. Areas $4,000+ per month for multi-family units on the spectrum, while Flushing and Jamaica offer more affordable options.
- Rent rates: For one-bedroom apartments, $2,700 per month. For multifamily units, $4,000+ peMulti-family homes typicallyProperty types: Small and $ $2 million neighborhoods like Flushing and Forest Hills, mid-rise apartments in Long Ithe Island City and Astoria.
The Bronx-
- Property prices: Multifamily homes typically range between $500,000 and $2 million. Riverdale and Mott Haven are among the more expensive areas, while the South Bronx offers lower price points.
- Rent rates: $2,000 monthly for smaller units and $3,500 for larger units.
- Property types: Classic apartment buildings in neighborhoods like Mott Haven and Pelham Parkway, typically 3-6 stories with 10-30 units. Rowhouses and brownstones in areas like Fordham and Tremont, 2-4 units.
Staten Island-
- Property prices: Generally range from $800,000 to $2.5 million.
- Rent rates: Around $1,800 per One-bedroom units cost around for one-bedroom u, and multi-family units cost around for multifamily two-family homes and garden apartments in neighborhoods like New Dorp and Great Kills. New condo development along the North Shore, featuring 6-12 units.
2. Westchester County
Investing in multifamily properties in Westchester County, north of New York City, is a great opportunity.
Due to its blend of suburban tranquility and urban convenience, this area offers a variety of investment opportunities with significant upside potential. Westchester has access to major transportation routes, excellent schools, and robust local economies.
As a result, it's an excellent spot for families, professionals, and retirees alike.
And that's not all!
From established towns like Yonkers and White Plains to more up-and-coming areas like New Rochelle and Mount Vernon, the multifamily homes in Westchester County offer affordable options and long-term appreciation prospects.
These properties can cost between $600,000 and $2 million, depending on the neighborhood and proximity to amenities like transportation and schools.
- Average Home Price: $796,175, up 6.9% compared to last year. (Source: Zillow)
Furthermore, Westchester County rental rates can range from $1,800 to $3,000. The rate is usually higher in the White Plains neighborhoods due to the vibrant economy and luxury units.
3. Buffalo
Buffalo, located in Western New York, is rapidly becoming one of the most attractive multifamily investment markets, and for good reason.
The booming real estate market, job growth, and an influx of young professionals have revitalized this once-industrial city.
The most significant upside of this market is its affordability. It allows investors to secure high cash-flowing properties at relatively low prices, making it an appealing alternative to pricier markets in New York City.
Buffalo's population is growing slowly, to be honest. However, the steady demand for rentals and noticeable economic growth indicate a secure future for investors. That's what matters most.
Furthermore, property listings in this area typically range from $300,000 to $1.5 million, depending on whether you're buying a duplex or a large apartment.
- Median Home Price: $231,605, up 8.1% compared to last year. (Source: Zillow)
While property prices are relatively low, rents in Buffalo have been increasing steadily, which is good news for investors.
Rent for a one-bedroom apartment in Buffalo typically ranges from $1,200 to $1,500 per month. Meanwhile, oversized units, such as three-bedroom apartments or duplexes, can have rents between $1,800 and $2,500.
4. Rochester
Rochester, located in the Finger Lakes region, is an emerging multifamily market.
The city's combination of a robust local economy and a growing student population ensures a steady demand for housing. Its economy is rooted in diverse industries, including education, healthcare, technology, and manufacturing.
These facets are spurring population growth and rental demand, making it a substantial market for multifamily investment.
Additionally, compared to other cities in New York State, Rochester offers relatively low property prices, ranging from $200,000 to $3 million. (Source: Realtor.com)
- Average Housing Cost: $326,005
Although the rents are lower than in large NY cities, they still offer substantial cash flow opportunities given the lower property costs. You can expect around $ 1,200 to $2,200 monthly rent, depending on the unit's size and well-maintained.
5. Albany
Albany, the state capital of NY, is the oldest city in the region. It is well known for its rich history, strong local economy, and a growing influx in the housing market.
The city offers a stable employment base since it has many government offices. Numerous higher education institutions are nearby, including the University at Albany (SUNY Albany) and several community colleges.
Looking for a Realtor Referral in NY?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
Furthermore, areas like Pine Hills, Melrose, Center Square, and Buckingham Pond are known for their family-oriented environments, tree-lined streets, parks, and family-friendly amenities.
As a result, there is an ever-growing need for residential homes at affordable prices.
Thankfully, Albany's housing stock offers a range of multifamily property types that cater to various investment strategies. From small duplexes to more significant apartment buildings, these properties can range from $250,000 to $1 million, lower than NYC rates.
- Average Home Price: $304,091, up 7.1% compared to last year. (Source: Zillow)
Meanwhile, rent rates vary from $1,200 to $2,500, depending on the apartment's size.
6. Syracuse
Syracuse, located in Central New York, has recently garnered the attention of real estate investors. Like Buffalo, this city has some of the most affordable properties and strong rental demand.
It is a mid-sized city with a diverse economy anchored by the education, healthcare, and technology sectors.
Syracuse's multifamily property prices are relatively low, typically around $300,000 to $1 million. More significant buildings in popular areas can have even higher prices, but they still have a much lower entry cost than larger cities.
- Median Home Price: $196,060, up 13.4% compared to last year. (Source: Zillow)
The rents are also in the lower spectrum, ranging from $900 to $1,500 per month.
Final Thoughts
Compared to the whole real estate landscape in the US, the state of New York stands out in a good way. It is still a reliable market for investors as it has decent inventory and higher income yields. The same cannot be said about other large metropolitan areas.
Anyway, that's it for today. I hope you found all the insights you sought in this write-up.
Have a nice day!
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