After one year of the Covid-19 pandemic, thanks to the rollout of multiple vaccines, life in major cities is starting to return to normalcy, as are the many industries that keep these cities populated. Real estate in New York City is beginning to see a rise in demand as prices begin to decrease again.
In Manhattan, Brooklyn, and Queens the number of leases that were signed in February of this year beat a record that was set back in 2012 during the comeback from the 2008 economic crisis. “The median rental price—lease value net of concessions—fell at least 11% across those boroughs last month,” according to a new report by Douglas Elliman Real Estate.
Hundreds of thousands of New yorkers initially fled from the city to head to suburbia when the pandemic began. Within the past few months, however, there’s been an increase in transactions within the cities major boroughs. The coming months are projected to give the city the boost it needs to recover from the economic impact of the pandemic.
Some owners are keeping their properties off the market to wait for more individuals to be vaccinated/ the summer when it’s expected that more individuals will be flocking to the city. According to UrbanDigs, a real estate insights firm, “in Manhattan landlords took more than 1,800 apartments off the market in February. For their part, renters are enjoying the reprieve from record prices, which peaked just before the pandemic.
According to Douglas Elliman, in Manhattan specifically non-luxury units will be offering the best deals in the coming months, and apartments of three or more bedrooms will likely be the most discounted due to the influx in demand. “The median rental price dropped 22.7% over the last 12 months on those units. Two-bedroom apartments are down 8.9%, while studios are down 19.3%. New signings are up dramatically from February 2020, but the overall vacancy rate remains high, at 5%, compared to 2.01% last year. More than 40% of new leases come with some form of landlord concessions, the authors said, often one or more months of free rent during the first year after signing.”
In Brooklyn, the borough saw the ““highest number of new lease signings since tracking began during the financial crisis, at 1,834 for February, a 133% year-over-year increase. Still, the median effective rent dropped 16.3%, more than any other year in almost a decade. Nearly 40% of new signings last month included landlord concessions,” according to reports from Miller Samuel Real Estate Appraisers & Consultants.
Miller Samuel also revealed that studio apartments in Brooklyn are seeing the best discounts in the borough. Average rental prices for studio’s fell nearly 19% when compared to this time last year. Apartments with three or more bedrooms saw the next biggest discount with a 13% decline. There are currently 3,438 listings in Brooklyn, which is also up 1,375 when compared to the amount of listings the borough had this time last year.
Queens also set a new record for pricing, with inventory up 64% and signings up 36% when compared to last year.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at email@example.com.