Where the Market's Just Been
The pandemic still casts a mighty big shadow over New York City's real estate market. You can't get a clear view of the up-to-the-minute market without at least a snapshot of where that market has recently been. No question remains that the pandemic spurred a massive exodus from the city's real estate market. Rising crime, growing concerns over schools, traffic, and public transportation, and pessimism over the city's future may have compounded the pandemic's effect.
A mid-pandemic survey showed huge percentages of higher-income earners working from home, believing that doing so was the new normal, and as a result, considering relocating outside of the city. Especially concerning, the same survey showed younger residents exhibiting more pessimism than older residents.
A September 2020 report documented the market's low point. Manhattan vacancy rates set a fifth-consecutive monthly record high. Landlord concessions set a new record while listing inventory set a new fourteen-year high, triple the inventory one year earlier. Brooklyn and Queens figures were not far behind. Apartment rents fell by up to one quarter, especially in the middle and at the lower end, while Manhattan home prices fell by almost 20%, according to real-estate data. The pandemic dug one enormous hole.
Where the Market Is
While the pandemic's wallop left a large market hole for new rentals and home sales to fill, the market right now is busily trying to fill that hole. Now is an especially great time for renters in the city, and they know it. January and February 2021 reports show Manhattan apartment rents still down by about 17% year over year, with owners conceding an average of 2.3 months of rent, despite a booming rental market attracting masses of new leases. Other boroughs show similar rental patterns. Co-op, condo, and townhome sales are also up by huge percentages, although sales to this point have only normalized, and prices have not yet increased.
Where the Market's Going
In sum, New York City's real estate market has already made substantial gains to this point, but those gains haven't come close to digging vacancies, rents, inventories, and home prices out of the pandemic's mammoth hole. Expect instead more weeks and months of very healthy activity in new rentals and in-home sales, with some locations and sectors on virtual fire, before the market returns to something more like its pre-pandemic profile. Dorothy and Toto may not be in Kansas anymore, but the roaring new market has a definite silver lining.
Beat the Trends
To stay ahead of the trends, retain and consult premier real-estate lawyer Melvin Monachan. Melvin Monachan helps residential and commercial clients in New York and New Jersey close their purchases and sales while also assisting with foreclosure defense. You need sound advice and aggressive representation to preserve, secure, or sell your real property. Call (347) 389-1682 or go online for an appointment at the industry-focused, relationship-driven Law Offices of Melvin Monachan, PLLC.