Despite the slow economic recovery and a population still below pre-pandemic levels, rents in Manhattan and Brooklyn continue to break records, in contrast to national trends of stabilizing or declining prices.
According to the Elliman Monthly Report, at the start of the pandemic, the median rent in Manhattan had reached $4,385. Following an exodus, a year later it fell 15% to $3,650.
However, since then, new rent has skyrocketed, reaching $5,470 in June, 30% higher than February 2020.
Brooklyn shows a similar if less extreme trend. In February 2020, the median rent was $3,442; today it is $4,087, 20% higher.
Why is rent going up in New York?
These increases are not explained by population growth. The city lost 400,000 people between 2020 and 2022 (although this could be exaggerated). Manhattan and Brooklyn dropped 80,000 and 130,000 people respectively.
Although the population has grown in the last year, especially in Manhattan, it is still smaller than before.
Although the city recovered almost all the jobs lost during the pandemic, the nation saw employment grow by 4 million, or 3%.
Experts agree that there is no single explanation. Among the reasons are: the exodus and return altered normal patterns, benefiting owners. Remote work and digital nomads increased demand.
In fall 2022, Fed rates slowed purchases, increasing rental demand, and services like Airbnb keep units off the market.
Experts believe that rents will stabilize and perhaps fall
The accelerated departure of couples with children under 5 years of age, for better schools or space, affected. Analysis by James Parrott shows decline in workers aged 25 to 34 and parents with children under 4 years of age.
Remote work fueled demand for larger apartments, exacerbating the trend for smaller homes.
Although prices are unsustainable, reasons such as speculation, workers looking for more space and scarcity contribute to increases.
As more buyers rent, rent-regulated units remain empty. Preferential rental agreement kept tenants in place, and Airbnb increased short-term supply.
Supply of new homes decreased due to changes in tax incentives. During 2023, only 30 multi-family buildings started construction each month, compared to 83 in 2022.
Mayor highlights need for construction incentives as city exceeds affordable housing targets. REBNY seeks programs to increase supply.
Although multiple factors explain rent increases in New York, the outlook indicates stabilization and possible decreases. The dynamics in the rental market continue to be the focus of attention in a city in constant evolution.
YouTube de Caleb Simpson
1/15
Alaina Randazzo, a young woman from Manhattan, showed her 80-foot apartment, the size of a car park, or a closet to YouTuber Caleb Simpson. It is perhaps the smallest in Manhattan.
Credit: YouTube Caleb Simpson.
Caleb Simpson YouTube channel
2/15
Simpson, who specializes in filming videos of unusual homes, expressed his surprise at seeing every corner of this Manhattan apartment.
Credit: Caleb Simpson YouTube Channel
Caleb Simpson YouTube channel
3/15
This is the living room and to take advantage of the space the small sofa becomes a bed, for when visitors arrive.
Credit: Caleb Simpson YouTube Channel
Click here to continue with the gallery
Caleb Simpson YouTube channel
4/15
The young woman says that before she lived in a much more comfortable home and paid $2,500, but she almost never left her apartment, since the building in which she stayed had many amenities.
Credit: Caleb Simpson YouTube Channel
Caleb Simpson YouTube channel
5/15
That, coupled with the fact that she likes to travel, led her to look for an apartment in this Midtown building. “It wasn’t this one, it was another one,” she says. But when she arrived someone had already rented it. She then she was left with this one that is the size of a closet.
Credit: Caleb Simpson YouTube Channel
Caleb Simpson YouTube channel
6/15
He pays $650, but in exchange, he has to make the most of every last inch of the place. He says that he does not cook very often, as he has to buy fresh food because he has nowhere to store it.
Credit: Caleb Simpson YouTube Channel
Click here to continue with the gallery
Caleb Simpson YouTube channel
7/15
This is the small kitchen. He says that at some point he found mice in it, but he already got rid of them. It has a small two-burner stove, a small sink, and a cabinet for storage.
Credit: Caleb Simpson YouTube Channel
Caleb Simpson YouTube channel
8/15
Fortunately, she doesn’t buy many things in the supermarket, since the kitchen only has this shelf.
Credit: Caleb Simpson YouTube Channel
Caleb Simpson YouTube channel
9/15
This staircase leads to his “room”, which is a bed attached to the roof of the house and takes advantage of the wall to hang his bags and other things.
Credit: Caleb Simpson YouTube Channel
Click here to continue with the gallery
Caleb Simpson YouTube channel
10/15
Although it may seem incredible, Alaina Randazzo does not live alone: she lives with her dog.
Credit: Caleb Simpson YouTube Channel
Caleb Simpson YouTube channel
11/15
This is the “room”, that is, your bed. Which is almost attached to the ceiling. The young woman admits that hitting her head when she wakes up is something that worries her and that she has never taken a couple to sleep there, as the space is incredibly narrow.
Credit: Caleb Simpson YouTube Channel
Caleb Simpson YouTube channel
12/15
The space is so narrow that he cannot stand on the bed and if he sits down he can almost touch the ceiling with his head. Randazzo says that he found the apartment on StreetEasy and that there were many interested parties.
Credit: Caleb Simpson YouTube Channel
Click here to continue with the gallery
Caleb Simpson YouTube channel
13/15
In the 80 feet of the apartment there is no space to use the bathroom. So the only one there is, it’s at the end of the hall and you have to share it with other tenants.
Credit: Caleb Simpson YouTube Channel
Caleb Simpson YouTube channel
14/15
Since she works from home some days, she escapes to the roof to work from there, with the skyscrapers of Manhattan as a background.
Credit: Caleb Simpson YouTube Channel
Caleb Simpson YouTube channel
15/15
Randazzo is sure that he made the right selection, although he acknowledged that he will not renew the contract. Her philosophy is: “she explores the world first…she thinks about the rent later”.
Credit: Caleb Simpson YouTube Channel
2023-08-09 01:45:00
#Rents #York #continue #rise #economic #recovery
