Consequences of the corona shock: New Yorkers are drawn to the countryside

Around 33,000 people have died of or with Corona in New York so far. More and more stressed New Yorkers are now leaving the metropolis and moving to the countryside. Real estate prices explode.

By Christiane Meier, ARD-Studio New York

On to new shores, is the motto in traumatized New York, and it is the banks of the Hudson, the river that borders Manhattan Island to the west. Recently, more and more New Yorkers stressed by Corona are looking for a better life, many even for a long time.

“I never thought we’d buy a house so quickly. It took three days,” recalls Chase. “Now the kids can make noise. But we miss New York. Before we had two jobs and childcare. I have Barely seen my husband. Now we suddenly have time for the family. I feel like a housewife from the 1950s, though. And because of my privileges, I almost feel guilty. “

Empty office towers – Rising real estate prices

If you follow the wide river north, it becomes more idyllic and, above all, cheaper with every mile. Until recently, nobody wanted to miss out on the cosmopolitan life in bustling New York, and even sky-high rents and apartment prices did not have a deterrent effect. In the countryside, on the other hand, you only spent the hot summer weekends in a holiday home.

That changed fundamentally with Corona. Since the office towers are almost empty and the restaurants only serve outside, since there have been no Broadway performances, no comedy clubs, no club scene, no concerts, many New Yorkers have wanted to set up their home office in the country ever since.

Kingston is particularly popular. The small town in the Hudson Valley, 90 miles from New York, has recently attracted masses of New Yorkers not only to its spell, but also to the real estate market. The hip tech scene in particular has caused real estate prices to rise rapidly in recent months. Kingston was booming even before the pandemic, now it’s one of the top ten most popular getaways in the country, and house prices have doubled.

An alternative to the rushed New York

With a population of almost 23,000, a good high school and beautiful surroundings that are ideal for hiking and skiing, Kingston is the alternative to the stressful everyday hustle and bustle of New York City. Have a cozy dinner on the waterfront and then walk home – this is the new life in the province. And unlike in many small towns, the population here is very colorful, with “Black Lifes Matter” signs on many corners. Almost a bit like in New York itself. The Brooklyn native quickly feels at home there.

“The market exploded in May, we’ve never seen anything like it here,” says real estate agent John Murphy. “We were doing very well beforehand, and then the pandemic came. It was a perfect storm. Many who had fled the city just want to stay here now. It was crazy after September 11th, but there was the market not that strong. Investors are buying now, too. Some properties are being sold 100,000 to 150,000 dollars above value. “

Whoever pays more gets the contract

The two locals Jay and Jenna also had to experience a real bidding war when they tried to buy their first house in Kingston. Only after six months and several attempts did they make it: they had to pay $ 30,000 more than requested. They were only awarded the contract because the New York competitor was unable to implement its cash offer on time. Nevertheless, the two are looking forward to the newcomers from the city: “Kingston has already experienced a renaissance anyway. That won’t change too much now,” Jay is sure.

In other parts of New York, too, city dwellers are scrambling for houses. In New Jersey, a house had 24 offers and sold 20 percent above the asking price.

In July, according to real estate appraiser Miller Samuel Real Estate, 44 percent more properties were sold than in the previous year. In Westchester County even 112 percent. At the same time, 56 percent fewer apartments were bought in Manhattan alone. In addition, prices are beginning to fall.

Imponderable consequences for New York

But what does that mean for New York? The city is beginning to worry that the residents will lose out on income tax revenues. Then there is less money for the police, infrastructure and, above all, the subway, the city’s lifeline.

Mayor Bill DeBlasio tries to calm down. The New Yorkers will be back, he says. If you don’t believe that, you don’t know New York. But even with a vaccine, this new landlord virus cannot be combated. Because of the forced work in the home office, many have got a taste for saving themselves the trip to the office, spending more time at home and maybe even in the countryside and saving money at the same time.

In any case, the arrival of the wealthy New Yorkers in Kingston offers new opportunities for the lives of the artists, musicians and bon vivants who previously hid here. But also the risk of not being able to pay the rents in the long term. New Brooklyn is what some old residents call their city with a slight irony. The invasion of young, high-earning startups, entrepreneurs and employees there had caused prices to skyrocket over the past decade.

A turbo-charged gentrification or a friendly takeover by the city dwellers? That hasn’t been settled in Kingston.

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