Home›Real Estate›Residential›Queens multifamily vacancy drops as apartment pipeline…

Queens multifamily vacancy drops as apartment pipeline shrinks 76%

CoStar data shows Queens’ multifamily vacancy fell to 2.08% in Q2 2026, while stabilized vacancy hit a record low of 1.3%.

Reported · Written up by our desk · Residential

Queens’ multifamily rental market tightened in the second quarter of 2026, with vacancy rates falling and the apartment pipeline contracting sharply, according to CoStar data cited by Commercial Observer.

Vacancy in Queens’ multifamily market declined to 2.08% in Q2 2026, down from 2.39% in the same quarter of 2025. Stabilized vacancy also reached a record low of 1.3%, which CoStar described as well below the metro average.

The apartment pipeline declined 76% since early 2024, falling from 10,881 units under construction to 2,597 units in Q2 2026. Commercial Observer reports this was the borough’s shallowest pipeline in at least a decade, reflecting a supply slowdown.

Commercial Observer links the pipeline drop to delays tied to New York City policy changes. The outlet cites the passage of the city’s 485-x initiative, which increases construction wage costs for projects over 100 units, and developer caution around a housing-friendly One LIC rezoning, passed last November, as factors that paused projects and slowed construction.

More like this

Sources