With all the predictions for the coming year, here's one most New Yorkers will be thrilled to hear: New York City rent prices are expected to drop in 2023. All that remains to be seen is when those price decreases occur and by how much.
Last year the median rent in NYC skyrocketed to almost $1,000 a month more than even the priciest other U.S. cities, soaring past Boston and San Francisco. In 2022, the median price of a one-bedroom in NYC was $3,700 a month, while in Boston and San Francisco, a similar apartment would rent for about $3,000 a month.
Driven by low interest rates and a thriving economy, the prices spiked throughout 2022. But, with rates climbing and the economy slowing, landlords are now seeing empty units sit for longer than they did last year. Prices began to drop in late 2022, and the slide continued into the new year. Analysts predict that at some point this year, landlords will begin dropping rental prices to find and move new tenants in faster.
In addition, there's been a lot of talk in the past year about converting older, less desirable Manhattan office buildings into residential spaces. As this happens, it will mean more apartments – all with new appliances and on-trend looks and amenities – entering the market, which will also help drive down prices.
All of which is to say, it's a strange time to be navigating NYC's real estate market, whether you're a renter, a buyer, or a landlord, particularly considering that interest rates have increased so much in the past year. Should you wait before looking for a new place? Should you buy? Is this a good time to sell? Will your interests as a landlord be protected in this changing landscape? These are all good questions to ask, and they're definitely questions you need answered.
The Law Offices of Melvin Monachan have decades of experience navigating numerous aspects of New York City real estate law, and we can help you get the foresight and confidence you need before jumping into such big decisions with such huge rewards and consequences. Contact us online or call us at (347) 389-1682 today.
There are no comments for this post. Be the first and Add your Comment below.
Leave a Comment