Increased demand for larger apartments to accommodate working from home is already evident in NYC, where the inventory of units with two or more bedrooms has seen a sharper decline compared to smaller units. With working from home set to stay even as COVID-19 restrictions are eased, we expect the demand for larger apartments will persist. That will require a reversal of the downward trend in apartment size, which in turn means that rent per square foot and capital values are set to fall back from 2025.
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