Data shows rents in New York have reached or surpassed pre-pandemic pricing
Rents across New York City have been on a tear, rising passed pandemic lows in some neighborhoods of the city. Rents plunged at the start of the pandemic as uncertainty swept the city and many renters fled to other homes outside the city or relocated. Now, however, rents are surging.
Many renters that entered into leases during lows of 2021 are approaching the end of their leases and are being caught by surprise with the steep renewal rates that are being proposed by landlords.
During the pandemic, Renters that new that would be staying put in the city began apartment shopping, finding spaces that they never thought were possible for themselves. Perhaps that was simply being able to afford to live alone or upgrading to a luxury building with full amenities in a prime location. When vacancy rates were high, landlords were desperate to secure tenants and offering extensive concessions.
The need for rock bottom prices and concessions came to an end as demand increased in New York. Rents in New York rose 33% between January 2021 and January 2022, nearly double the national average according to a study cited by The New York Times.
Rents in city’s most coveted neighborhoods experienced even larger swings, with some areas such as the Upper West Side and Williamsburg now seeing rents some 40% higher and even higher than before the pandemic.
Rents in some neighborhoods of Manhattan such as the Upper West Side have increased some 40%, more than double the national average
With pandemic deals expiring, rents are rising by hundreds of dollars a month. While many Renters who locked in COVID deals on their leases knew the deal was not going to last, many did not expect the extent to which rates would increase after the initial lease period.
The increase in rent, while a sign of the market stabilizing and the city recovering, is a frustrating situation for renters nonetheless.
In data cited by Bloomberg, it notes that tenants paid a median rent of $3,630 in February 2022, the highest for any month in more than a decade
What Should Renters Do?
Renters facing steep increases on lease renewals need to really asses the increased cost. While large rent increases are a hard pill for anyone to swallow, sometimes all the factors of moving can still be more than staying put.
Additionally, inventory is tight so finding a new option could also be challenging. Renters will need to re-adjust their expectations of what they can afford at their price range in today’s market.
Of course, if the proposed renewal price is simply out of your price range, begin your search for a new space as soon as possible. Partnering with a Broker that knows the city and can navigate the complex Rental Market will be a huge asset. Who you work with matters, so ensure you are working with an Agent that is a good fit. Negotiating with Landlords can be challenging so having a skilled negotiator on your side to get you the best deal is a must.