A man enters a building with rented apartments on August 19, 2020 in New York City. Most retailers and apartments in the city are left to rent after the outbreak of New York after the coronavirus epidemic.
Eduardo Munoz Alvarez | Press Scene | Corbis News | Getty Images
The number of rented apartments in Manhattan has nearly tripled since last year, as more New Yorkers have fled the city.
There were more than 15,000 vacant rented apartments in Manhattan in August, up from 5,600 a year earlier, according to a report by Douglas Aliman and Miller Samuel. The list of vacant units is the largest record ever since data collection began 14 years ago, the report said.
Analysts say the rental market is the best barometer of overall strength in Manhattan’s real estate market, as rental apartments account for 75% and that market responds more quickly to demand for change than the sales market.
Experts say a large number of Manhattan tenants have fled the city due to the migration from the city to the suburbs during the Covid-19 crisis.
Jonathan Miller, CEO of Miller Samuel, said the rental market is weak and weakening. “Most first-time buyers in outlying areas come from the Manhattan rental market.”
The prospect of a reversal in the fall or late 2020 seems more unlikely. Although rental prices have come down – average rental prices have fallen by 4% in August Gust – the discount is not yet high enough to lure new tenants back to the city. The average rent for a two-bedroom in Manhattan is still 4,756 a month.
The fall in the Manhattan rental market is usually a slow period, especially before the election.
Landlords are always offering big incentives to try to lure tenants, with the largest share of landlords offering discounts in history. On average, landlords were offering 1.9 months of free rent to new tenants in Ren Gust. The lower end is in the weakest segment of the rental market, for one bedroom and studio, partly because of the epidemic’s impact on the lower earners.
The average rental price for studios fell 9% to 2, 2,574, while the average rent for one-bedroom apartments fell 5% to $ 3,445.
The big question for Manhattan’s economy and for that is how far the economic wave will spread from the weak rental market. While large homeowners like REITs and real estate companies have access to capital, small moms with one or two buildings and pop-up homeowners may have difficulty paying their mortgage and property taxes, which later hurts banks and lenders, as well as New York’s tax revenue. .
“Where you’re already looking at the lower end of the stress spectrum on homeowners,” Miller said. “You’re clearly seeing weakness in the small end of the rental market.”
.
