Tritec Real Estate Highlights Rising Demand for Rentals Near New York City

NEW YORK — Tritec Real Estate Company released commentary on December 2, 2025, discussing trends in the New York metropolitan housing market as renters increasingly move from the city to suburban areas. The firm’s report, titled “New York-Adjacent: Why NYC Renters Are Flocking to the Suburbs,” attributes the trend to high housing costs and limited rental supply in the city.

Rising Demand for Rentals Outside NYC

According to Tritec Real Estate, New York City is the most expensive city in the United States, with the cost of living 131.7% higher than the national average and average rents 147% higher. The firm noted that the average one-bedroom apartment in the city measures 591 square feet, about 15% smaller than the national average. These conditions have contributed to what Tritec describes as a rental market where supply cannot meet demand.

Impact on Real Estate Development

Tritec Real Estate reported that high operating costs and limited tax incentives have slowed new real estate development in the city. The firm cited the expiration of New York State’s previous affordable housing tax exemption program in 2022 as a contributing factor. Governor Kathy Hochul extended the completion deadline for approved projects to June 2031. Tritec noted that the replacement program is viewed by developers as a weaker alternative with stricter requirements, leading to stalled projects, according to CoStar Group data referenced in the report.

Suburban Multifamily Growth Near New York City

The firm’s analysis points to a growing number of renters relocating to suburban communities near New York City. Tritec Real Estate referenced the Fiscal Policy Institute’s data showing that New York City accounts for 90% of the state’s population loss, largely due to declining affordability. Despite this, the city’s job market continues to attract workers who are choosing to live in suburban multifamily developments within commuting distance.

Market Conditions and Vacancy Rates

Tritec Real Estate highlighted that the city’s vacancy rate stands at 3.4%, nearly half the national average of 8.3%. Vacancy rates have not surpassed 4% since 2009, underscoring what the firm described as sustained demand for rental housing. The imbalance between supply and demand continues to influence both urban and suburban real estate markets, particularly in the multifamily sector.

Developers’ View of the Changing Market

Tritec Real Estate’s report suggests that suburban markets are absorbing much of the demand displaced from New York City, with developers focusing on multifamily projects that offer more space and relative affordability compared to city rentals. Specific project details were undisclosed.

Sources: Tritec Real Estate Company