Contract firms in some areas of New York have recorded the highest increase in past 13 years.
New York City has seen its worst loss in the housing market since 2008. The coronavirus crisis made the Big Apple a quiet city, without an influx of people and with more empty apartments not seen in decades.
Constant closures due to the coronavirus, travel restrictions, and increased crime caused many tourists and travelers to view New York City as the last option to move or rent an apartment.
Most of the people preferred to buy a house in the suburbs, fleeing the crisis in the city.
However, a year after the pandemic began, the situation seems to be improving in New York City. The real estate sector has seen progress with the increase in leases in recent weeks, despite having a first month in decline.
Apartment lease signings are on the rise in Manhattan and Brooklyn. Both areas of the city have experienced the highest increase in past 13 years, according to The New York Post review.
A report recently made by the firm Douglas Elliman indicates that January has been an “exceptionally lively” month for Manhattan and Brooklyn due to the number of contracts signed since the coronavirus pandemic began.
According to Douglas Elliman, this would be the fourth consecutive month where homeowners have seen gains from tenants.
The firm detailed in its report that a total of 6,255 lease contracts were signed in Manhattan alone, compared to the 3,969 that were signed last year. These figures represent a 58% increase in the contracts signed.
Report author Jonathan Miller said this data represents a good start for New York City’s real estate recovery in the midst of a financial and economic crisis.
“The continuous decrease in the average net effective rent, the record concessions and the high unemployment rate increased the number of new lease contracts”, the report detailed, according to The New York Post review.
Read here: Manhattan with more apartments for sale during covid-19 than in decades
With the fall in rental prices in New York City, buyers showed interest in acquiring a property in the city, so the number of leases began to rise, the firm explained.
“The surge in new lease signings began when rents fell enough to pique interest from many on the sidelines, with prices out of town,” expressed Miller exclusively for The New York Post.
“It is an important first step in an eventual recovery, but it is only a small step. Given that many of the rental market metrics remain very weak, we are likely to see further price drops in the coming months “added.
Miller added that although the vaccination journey has started in New York City, the lack of speed will cause the economy to recover to a slower level than expected.
“It’s hard to see rents stabilize until after the vaccine is widely distributed, which is expected to be in the fall. As for whether rents go up from there, he’s optimistic, but it really depends on how quickly the city’s economy recovers. “Miller told the Post.
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