During the early days of the pandemic, when residents were leaving NYC in droves, landlords put on the bargain blowout sale of the century. With so many properties available for rent, landlords had to lower rental rates to keep tenants in their units. For a while, this benefited both parties, but now the job market has stabilized, and the concerns that drove people away from huge metro areas are mostly alleviated. The result is that NYC rent is going back up.
The New York Times reports those who signed a lease while rents were low are now looking at lease renewal rates that are, on average, 33% higher than what the tenants are currently paying. These increases often raise the cost of rent to above the pre-pandemic rates.
Why is New York Rent Increasing?
It's difficult to tell how long Covid-19 will impact New York real estate. Although much has gone back to normal, the real estate pendulum continues to swing, and those who initially fled NYC are now returning with enough income to pay the higher rates. In addition to the increase in demand for NY real estate properties, landlords are working to recoup costs from unpaid rent and increasing inflation. Almost everything costs more these days, and those costs get passed onto the tenant.
Some landlords opt not to take advantage of the market demand and are instead only raising rents proportionate to their increased cost of maintaining the property. These landlords see value in keeping the great tenants they already have. After all, there are costly risks involved when taking on new tenants.
Speak with a Real Estate Lawyer in New York
The NY real estate market is complex, and various factors will continue to impact demand for the foreseeable future. If you need legal guidance concerning your NYC real estate property, speak with the dedicated team at the office of Melvin Monachan, Attorney at Law. Call (347) 389-1682, or contact us online today, to learn how we can help you.