Sell Your Commercial Property Fast In New York City, NY

Who rents in New York City

New York City had 8,483,844 residents in the ACS 2020–2024 estimates, living in 3,334,088 occupied homes. Renters held 2,241,032 of them, or 67.2%. The median household income was $80,483, and the median gross rent was $1,821.

That renter base is supported by a very large payroll. The Bureau of Labor Statistics counted 4,894,900 nonfarm jobs in the city in July 2026, 79,200 more than a year earlier, a 1.6% gain. Job growth at that scale adds renter households faster than the city adds apartments.

The city's own survey shows how tight that has become. HPD's 2023 Housing and Vacancy Survey, based on almost 10,000 interviews, found a net rental vacancy rate of 1.4%, the lowest since 1968. Only about 33,000 units were available to rent citywide. Vacancy was 0.39% for apartments renting below $1,100 and under 1% for everything below $2,400; only units at $2,400 or more had meaningful vacancy, at 3.39%. Over the survey period the city added roughly 275,000 households, while the net housing stock grew by about 60,000 units.

Rents and affordability

Different sources measure different slices of the market. The ACS median of $1,821 includes utilities and averages five years of leases. HVS put the 2023 median rent at $1,650. HUD's FY2026 Fair Market Rents for the New York HUD Metro FMR Area are $2,529 for a studio, $2,655 for a one-bedroom, $2,910 for a two-bedroom, $3,644 for a three-bedroom and $3,959 for a four-bedroom, and they set the benchmark for voucher-assisted tenancies.

Affordability is stretched. Of the city's renter households, 49.8% spend 30% or more of income on gross rent and 27.5% spend half or more (table B25070). In a stabilized building, that limits what tenants can absorb; in a market-rate building, it limits how far renewals can go before turnover rises.

Rents also differ sharply by borough. The Rent Guidelines Board's 2026 Income and Expense Study, drawn from nearly 17,800 buildings with more than 805,000 stabilized apartments, reported these 2024 averages:

Building age matters as much as location: pre-1974 buildings averaged $1,521 per unit, against $2,374 in buildings completed after 1973. Citywide, these buildings collected $1,890 per unit per month in total income, spent $1,203 on operating costs, and kept $688 in net operating income.

The apartment stock

Of 3,678,486 housing units in the city, 2,288,688 (62.2%) are in buildings with five or more units, and 1,208,536 (32.9%) are in buildings of 50 or more (table B25024). Between those extremes, 246,610 units sit in buildings of 5 to 9 units, 243,463 in 10 to 19 and 590,079 in 20 to 49, the range where most privately held walk-ups and mid-size elevator buildings fall. Another 784,261 are in two- to four-unit buildings. The median year built is 1952. About 38.2% of units predate 1940 and 78.9% predate 1980 (table B25034), which is why boiler, facade, gas line and electrical work show up in so many buyer inspections.

Much of that pre-1974 stock is rent-stabilized. The Rent Guidelines Board sets annual adjustments for roughly one million stabilized units, and its 2025 stock report estimated that about 32,745 units entered stabilization that year while at least 11,464 left, a net gain of 21,281, the largest since the board began tracking in 2003. Tax-incentive programs (421-a and 485-x) accounted for 94% of the additions.

New supply

Construction is rising but remains small relative to demand. The RGB's 2026 Housing Supply Report counted 38,691 new Class A units completed in 2025, up 14.3%, and 17,673 units permitted, up 15.3%. Permits shifted toward the Bronx, which rose 110.8% to 7,016 units, while Brooklyn fell 13.7% to 5,744, Queens 9.7% to 2,832 and Manhattan 14.3% to 1,617. Staten Island permitted 464 units. The report notes City of Yes, passed in December 2024, could produce as many as 80,000 homes over 15 years, and that the first 485-x buildings, 17 rental buildings with 316 units, were certified in 2025.

For owners of older Bronx buildings, new subsidized supply nearby means more competition for tenants at the top of the local rent range, but little effect on stabilized units that already lease well below market.

Property taxes on apartment buildings

The Department of Finance puts apartment buildings, co-ops and condos in Class 2 and estimates market value with an income approach, according to its Class 2 guide. The assessed value is 45% of that market value. For buildings of 10 units or fewer, assessed value increases are capped at 8% a year and 30% over five years. For 11 or more units, changes phase in at 20% a year over five years through a transitional assessment.

DOF lists the Class 2 tax rate at 12.439% for tax year 2026, down from 12.500% in 2024/25. Before phase-ins and exemptions, that rate on a 45% assessment equals about 5.6% of DOF's estimated market value a year. Taxes are the largest line in the RGB's Price Index of Operating Costs, at 27.9% of costs, but rose only 2.6% for April 2025 to March 2026, while insurance climbed 10.5% and fuel 11.0%. The overall index rose 5.3%. Class 2 assessment appeals to the Tax Commission are due March 1 (DOF).

A sale carries transfer taxes on both levels. The city's RPTT on apartment buildings is 1.425% up to $500,000 and 2.625% above it. The New York State transfer tax is 0.4%, and in the city an extra 0.25% applies to non-residential conveyances, which include apartment buildings, of $2 million or more. On a $5 million building, that adds up to $131,250 in city tax and $32,500 in state tax, a cost that comes straight out of net proceeds when the seller pays.

Landlord rules and local compliance

• Rent stabilization: covered buildings are generally six or more units built from February 1947 through 1973; owners register rents annually with DHCR (HCR). The RGB adopted its 2026–27 order on June 25, 2026, for leases starting October 1, 2026.
• Good Cause Eviction: mandatory in New York City. Increases above the lower of 10% or 5% plus CPI are presumptively unreasonable for covered units (HCR). HCR's August 2026 notice set the regional CPI at 3.38% and exempts units renting above 245% of the FMR.
• Deposits: capped at one month's rent, with an itemized statement due within 14 days after move-out (GOL § 7-108).
• Registration: all buildings with three or more units must register with HPD by September 1 each year.
• Emissions: most buildings over 25,000 square feet must meet Local Law 97 limits, which began in 2024 and tighten in 2030.

What this means if you own a building here

Buyers price New York City buildings on the legal rent roll. A building where most units are stabilized at registered rents will trade on in-place net operating income and its expense outlook, including insurance, fuel and any Local Law 97 work, not on the 1.4% vacancy rate. A building with mostly free-market units benefits more directly from tight supply, though Good Cause limits apply to many of them.

Before talking to buyers, pull your DHCR rent registrations, HPD registration and open violations, and your DOF notice of property value. Model the transfer taxes with our cap rate calculator and the 1031 exchange calculator if you plan to reinvest. Skyline Capital Investments buys 5+ unit buildings in the Bronx, Brooklyn, Queens, Staten Island and Manhattan, stabilized or free-market, and our seller page explains how we underwrite.