In this episode of Coffee & Cap Rates, Shimon Shkury sits down with Kenny Burgos, CEO of the New York Apartment Association, to discuss the current state of New York City’s multifamily housing market and the growing challenges facing the rent-stabilized sector.

The conversation takes a deep dive into the long-term effects of the 2019 Housing Stability and Tenant Protection Act (HSTPA), including vacancy control, rising operating costs, capital constraints, declining valuations, and affordability pressures across the city’s housing stock.

Together, they explore how policy changes, economic vacancy, and structural market constraints are reshaping investment activity, asset performance, and financing conditions for rent-stabilized housing in New York City — and what it may take to restore long-term stability and investment viability.

Shimon Shkury, President and Founder of Ariel Property Advisors; Victor Sozio, Founding Partner; and Matthew Dzbanek, Senior Director in the Capital Services Group, take a deep dive into New York City’s multifamily market on this episode of Coffee & Cap Rates. They discuss key trends from Ariel Property Advisors’ Q1 2026 Multifamily Quarter in Review New York City, and what to expect for the remainder of the year.

Highlights from the podcast include:

• The NYC multifamily market recorded approximately $2.4 billion in transaction volume in Q1 2026, up 7% year-over-year, reflecting sustained investor activity despite a bifurcated market.
• Free market assets continued to drive momentum, supported by rising rents and strong investor demand, while rent-stabilized properties faced ongoing pressure from expenses, regulatory constraints, and NOI erosion.
• The rent-stabilized segment saw notable activity, including distressed transactions, as owners and lenders increasingly worked toward restructurings and pragmatic solutions.
• Affordable housing remained steady, with private capital increasingly stepping into existing structures and sophisticated investors targeting long-term value opportunities.
• Lending activity remained active for well-located free market assets, while capital availability for stabilized assets remained more selective, with lenders focused on collections, violations, and overall asset quality.
• Construction and development financing continued to attract strong interest, supported by favorable supply-demand dynamics and growing appetite for new rental and condo projects.
  Overall, liquidity and investor engagement are expected to remain strong as both buyers and lenders continue to meet the market in 2026.

Access the full report here: https://arielpa.com/report/report-MFQIR-Q1-2026#overview

In the latest Coffee & Cap Rates podcast, Shimon Shkury, President and Founder of Ariel Property Advisors, Jason Gold, Senior Director, and Daniel Mahfar, Director, discuss multifamily and development market trends in the Bronx as reported in Ariel’s Bronx 2025 Year-End Commercial Real Estate Trends report.

Highlights from the podcast and report include:

• The Bronx real estate market reached $1.8 billion in 2025, a 46% year-over-year increase, with multifamily dollar volume rising 66% and development up 26%.
• The average price per unit for multifamily units hit a 7-year low of $105,000, influenced by high interest rates, increased expenses, including insurance and taxes, and anticipated rent freezes for stabilized buildings.
• Multifamily pricing is expected to remain at a decade-plus low, attracting local owners seeking a low basis relative to the rest of the country.
• Development activity is forecast to continue an upward trend due to investors’ increased familiarity with the 485x tax abatement and "City of Yes" regulations.