New York Reclaiming Demand from Nearby Long Island

One of the most expensive apartment markets nationwide, the small Nassau County-Suffolk County, is losing steam as residents move back to New York. Long Island is the most expensive secondary market nationwide. In fact, with prices hitting $2,711 in January, the only markets with more expensive rental rates are major players like New York, San Francisco and San Jose. Nassau County-Suffolk County started racking up apartment demand at the onset of the COVID-19 pandemic in 2020, as residents left the then-epicenter of the pandemic – pricey New York. Occupancy in Long Island peaked at 98.8% in mid-2021 before coming down a bit at the end of the year as residents returned to the big city. Neighboring New York, located just about one to two hours west, saw deep net move-outs that sent occupancy spiraling in 2020. Occupancy in New York bottomed out in February 2021 at 95.1%. Almost a year later, occupancy there is back to performing above U.S. norms at 98.8% as of January, which is well above Long Island’s rate of 97.6%.