New York housing has seen its lows and highs in rapid succession since COVID-19 swept through the state. In early 2020 and 2021, it was a buyer's market. It took months to rent apartments and commercial real estate because so many people had left the city and were wary of returning. Jump to 2022, and those same apartments are being snapped up in a matter of a few days, sometimes hours, after being listed. The shift from a near 50% vacancy rate to now less than 2% is not only astounding; it's concerning. This type of market is rife with bait-and-switch situations and broker fee bidding wars, fueling desperation and unethical behavior.
Now is the best time to be a New York real estate broker. In July of 2022, the average rent for a Manhattan apartment hit $5,000 a month – which is 29% higher than the same time last year. Demand for apartments is going up despite supply going down. When once brokers stuck to charging either 15% of the annual rent, or one month's rent, for their services, they are now charging whatever they feel like, leaning into the lack of regulations in this area. There is much to take advantage of in this market, including unique marketing strategies like TikTok videos and Instagram Reels.
With the highs, there are always lows. Though the market is great for many brokers, many are finding it hard to get listings as there are very few vacancies. Additionally, those trying to take advantage of the market are dealing with burnout. They are overwhelmed and working nearly a hundred hours a week, every week, for months on end. And when they can't provide what their clients want, it creates strained relationships that might push the customer away, making it hard to keep returning clients.
Attorney Melvin Monachan has years of experience helping brokers navigate the complexities of real estate law in New York. He understands how much pressure and stress brokers are under, especially during this market. If you are struggling with your brokerage or have general real estate law questions, call our offices today at (347) 389-1682 or contact us online.