Whether you're hoping to rent or own, the housing market all over the U.S. is crazy right now, and it's even crazier in New York City. Realtors throughout the city say they're listing properties for prices far above market value, and they're still getting multiple offers and finding buyers willing to get into bidding wars.
It's Rough Out There for Renters
New York's housing market has always been expensive, but during the peak of the pandemic, as people left the city for more rural areas, there was a period when renters and buyers could find some relative deals. Now, with the city fully open, businesses telling workers to come back into the office, and university students moving into the city to get ready for school in the fall, the deals are long gone.
The median monthly rent in NYC is up $725 from June 2021, and it rose $59 from just May to June 2022. Now, the monthly median rent in NYC is $3,300, 53% higher than the national median of $2,155. All of this adds up to NYC experiencing the fastest rent growth in the U.S. The impact is even hitting renters in rent-stabilized apartments. The city's Rent Guidelines Board has agreed that landlords can raise the rent by as much as 3.25% for new one-year leases and 5% for two-year leases.
And Buying is No Better
The explosion in rent prices has led many people to consider owning instead of renting. But all that increased demand only means more people competing for the same properties, which also drives up sales prices for buyers.
Realtors recommend that renters and potential buyers get ready for the sticker shock by looking at places that are priced a little below what they think they can afford, knowing that there's a good chance they'll end up having to pay over market value. They should also have all their paperwork in order before they start looking: income statements, photo I.D., tax forms, bank statements, and get a letter from their job saying they're in good standing.
With so much happening in the city's real estate market, it's more important than ever that renters' and buyers' rights are represented. In the rush to secure a place, it can be tempting to skim over the legal details. An experienced real estate attorney can make sure you aren't getting locked into a deal that you'll regret. Call the real estate attorneys at Monachan Law at (347) 389-1682 or contact us online today.