After a year and a half of decline, New York City rents are beginning to increase, according to a new market report by StreetEasy. Although the changes remain in the double digits, the trend lines are clear across all five boroughs. Manhattan’s rent, which saw the most precipitous drop, has seen an increase by $60, to $2,860; Brooklyn and Queens saw increases by $49 and $50, to $2,449 and $2,100, respectively.
“The vibrancy and energy of the city is returning, and the real estate market is following suit,” said StreetEasy economic Nancy Wu. Although the pandemic and its economic fallout resulted in a massive drop in prices – by some 16.8% in Manhattan, the steepest decline in decades – it is clear that predictions of a more permanent exodus from the City have not been borne out.
No sooner had vaccinations been given and COVID fears assayed then the decline, which some said might be permanent, reversed.
Manhattan remains the farthest from its pre-pandemic height; despite the last months’ increase, rent remains 18% lower than its March 2020 high of $3,500.
Yet, as the pandemic winds down, the economy re-opens, and people return to the City, we can expect that gap to close. You can read more here.
The rising rental market is fueling the sales market as well. As rents rise, it encourages people to purchase especially while mortgage rates remain so low. Our team represents high end landlords and we have experienced bidding wars on our rental properties that have pushed prices over our asking price. New York is back!!!