Three Good Investments To Make in NYC Multifamily

Roman Sinclair of Sinclair Realty Group identifies three NYC multifamily investments that should dominate 2026 portfolios: 421a tax‑abated buildings, small properties under five units, and raw land or development sites. 421a assets—mostly built after 2009—either retain low‑tax abatements or have already exited rent‑stabilization, giving investors a clear pathway to free‑market rents at scale. Smaller buildings enjoy statutory caps on assessed‑value growth, shielding them from steep tax hikes while remaining outside rent‑stabilization and good‑cause‑eviction rules. Finally, undeveloped land lets developers set market rents from day one, bypassing most regulatory constraints.

5 % property‑tax increase. 421a properties under active abatements are immune to the tax hike, and once the abatement expires they become free‑market units untouched by the freeze. Tiny buildings (one‑to‑five units) have assessment caps of 6‑8 % annually, so even a higher tax rate translates to modest dollar increases, while their rents stay fully flexible. New‑development sites pay minimal taxes initially and are exempt from good‑cause‑eviction limits, allowing unrestricted rent growth.

These dynamics reshape supply and demand. 4 %—and pushing renters toward the free‑market segment, which could accelerate median Manhattan rents past $5,000 and Brooklyn rents beyond $4,000. Investors who allocate capital to 421a buildings, small free‑market units, or development land stand to capture that upside while avoiding expense volatility. Sinclair’s newsletter offers deeper modeling; reaching out can uncover specific opportunities in these high‑return niches.