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By: Staff Reporter
Famous for historical and iconic landmarks, New York, the self-named “Greatest City in the world”, is also an industry epicentre for the culinary arts. So it’s no wonder people often flock to the Big Apple to have a peek at Times Square, Lady Liberty and Central Park, to name a few.
People have fled to New York City for hundreds of years with hopes to live the American dream and continue to do so, with employment opportunities seemingly endless. The most populated city in the United States currently accommodates over 18 million residents, and the number keeps on growing.
Renting in The Five Boroughs Area
Continue reading if you’re thinking of relocating to New York, or you’re already there but looking for a different place to rent. There are a few things to consider before taking this highly anticipated step. First, depending on which county you’re interested in, the safety and protection of your assets should be a priority. To do so, it is always a good tip to look into renters insurance in order to protect the stuff you will be moving into your new apartment. For example if you are moving to Brooklyn you should consider checking Brooklyn renters insurance coverages and costs.
The Price Drop
New York is notorious for having the highest cost of living in the US, and first-time renters are often forced to move back home because they can’t keep up with living expenses. So, now’s the time to get back on that horse and latch onto those stirrups if you’re looking to rent a place. 2020 has seen a dramatic price drop in rentals, and although the market seems to be making a comeback, reports claim it would take at least a year before pricing increases to what it used to be.
The average rent in Manhattan for May was $3,037, up 8.8% from April. The total included concessions and was the highest monthly surge in almost a decade. Despite the steep increase, though, the rent was still 11.1% lower than in 2019.
Now would be the ideal time to take advantage of the plunge and schedule viewing appointments for those who can.
Despite the New York State supporting agents’ ability to charge broker fees to tenants, landlords have been covering broker costs. This action is used to persuade potential renters and current ones. From January through May, over 80% of listings advertised that lessees wouldn’t have to pay broker fees. This came as a relief as broker fees amounted to about 15% of an annual lease. The New York price readjustment stems from a nationwide trend where tenants seek more space with less rent, and landlords have had to take a knock on rent costs.
However, lessers have started rethinking their generosity and are slowly removing concessions from their deals, such as three months rent-free and so forth.
So, if you want to live somewhere fancy, now might be the time to do it. However, there are still some appealing deals available to new and old renters.
The Atmospheric Shift
Well, we wouldn’t call it atmospheric, but there has been a shift in the rental market, and tenants can sense it. In a recent analysis, lessees are signing the shortest leases since January 2021, averaging a year, a sign they believed prices could take another drop by the time it was time to renew their agreement.
However, in May, the median lease duration was 15.6 months, indicating that people expected the prices to stay the same or slightly increase. So the possibility for a surge is there, but it will be a while before prices move back to where they’ve been in previous years.
One of the leading reasons rental prices won’t rapidly increase is due to the stark amount of places available at the moment. Unless things go back to normal, economy-wise, there’s no way landlords would think of increasing their rental prices right now.
It’s going to take more than the summer for a considerable number of people to move back to the city and afford rent costs at what they used to be. The city has reached a 10% vacancy on its rent capacity, and it’s clear that landlords have been warehousing their empty apartments. Able to lease a limited amount which allows them to cover necessary expenses. An estate consultant estimates that tenants who got the deal won’t be given another chance when prices eventually go back to normal.
New York has always been the place to be, and many have flocked there for years. Now, with the tremendous price dip, people who can afford to stay in the city should take advantage and get themselves a place to stay. However, they need to consider landlords are slowly removing concessions, and this generosity may only last for another year.