Newsweek recently reported on massive crowds waiting to view vacant NYC apartments. Although the crowds shocked viewers, is the demand for properties in NY surprising to the experts? Not when we think about what's happening with NY's housing market right now.
For one thing, average rental rates in NY have surged by 24% since 2021, and the median rent in Manhattan reached an incredible $5,000 in July 2022, according to data from Douglas Elliman. What do numbers like these mean for renters and buyers, though? Let's look at what the trends suggest.
How Are Renters Affected?
This is a hugely challenging time for aspiring renters in NYC, with low vacancy rates meaning more renters are competing for the same property. Rising interest rates will push more buyers towards renting, which will only increase the competition for vacant units. Landlords are making the most of soaring demand by charging seemingly eye-watering prices.
What About Buyers?
It's not just renters who are affected by NYC's wild housing market – it's a struggle for buyers, too. With inventory shortages driving up house prices in both the suburbs and the city, and those all-important mortgage interest rates showing no immediate signs of falling, many buyers will look elsewhere to avoid joining the contest for rental space.
What's Next for NY's Real Estate Market?
It's a seller's market right now. That said, no trend lasts forever, and there's every chance the housing market will stabilize or cool down – especially when we could be heading towards a recession. If you plan on buying, selling, or renting in NYC, it's crucial to seek independent legal advice from an experienced real estate attorney before making any financial decisions.
Hire a New York Real Estate Attorney
While no one can say for sure what will happen with New York's real estate market in the longer term, it's still a thriving area and a popular place to live. If you're looking to buy or sell New York real estate, Melvin Monachan, Attorney at Law, can help.
Call the team now at (347) 889-1682 or contact us online.