More than one-third of New York rentals were discounted during the second quarter as demand continues to slump thanks to the economic effects of the COVID-19 pandemic - including the flood of workers telecommuting instead of vying for limited rental space downtown.
According to Fox Business, rent prices were discounted an average of 6.7% ($221 per month) across 34.7% of New York properties in Q2 - with rents at higher-end apartments experiencing the highest cuts "as wealthy buyers have flocked to the suburbs since March."
"Demand will remain low as new hires, interns and students begin jobs and school remotely, and as many New Yorkers escape the city temporarily or permanently," said StreetEasy economist Nancy Wu. "As inventory piles up due to this lack in demand, even more landlords will need to make rent cuts, and rents will likely drop even further."
The second quarter of 2020 marked the first time since the Great Recession that there was a year-over-year rent price drop in the metro.
Meanwhile, StreetEasy saw an uptick in interest in Manhattan’s outer boroughs of Queens and Brooklyn.
Wu said remote work makes commuting an insignificant factor in choosing an apartment location, which helps explain an increase in interest in Queens and Brooklyn. That’s a trend that will continue as long as social distancing orders are in place, she predicted.
Rent prices rose in both areas during the second quarter – although at a modest and slower pace. -Fox Business
According to Miller Samuel Inc. and Douglas Elliman Real Estate, Manhattan leases dropped 35.6% in June vs. the prior year, which followed declines of 37.7% in March, a record 70.9% in April and a 62.2% drop in May. This comes as Manhattan apartment sales dropped by 54% in the second quarter, the largest percentage decline in 30 years, according to Elliman. Median sales price fell 18% to $1 million, the largest price decline in a decade.
In April, we reported that New York City lease agreements had plunged 38% in March y/y, the second largest drop in 11 years.
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5 comments:
Back in March friends of mine high tailed it out of NYC for FL when corona shut everything down. They had intentions of going back but never did. Lenox Hill neighborhood which is the high rent district is where they lived. They just left the apartment. By mid April they were moving into the house they bought in S FL. They look forward to voting GOP to help cancel out all the democrat voters in S FL.
Hahaha. To late you freaking libutards. You can rent to all the anarchists shooting, looting, and tooting. By the Election you won't even have a City.
I for one would love to see New York city look like Detroit! Those liberals running it deserve to have a vacant slum!
@10:01 There hasn't been any looting in NYC in nearly two months. What are you even talking about?
Douglas Elliman Real Estate prioritizes in luxury properties. The only apartments seeing drops in rent are obscenely overpriced, high end apartments in expensive Manhattan neighborhoods. Average apartments that the working class rent haven't seen any kind of price drop.
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