|NYC real estate has recovered from COVID, and then some. The summer of 2021 saw record migration to the City; of course New Yorkers never doubted the comeback, but NO ONE saw it coming so quickly. At best the bounce back was hoped for around 2022-2023.
In the Village, rents broke records and new development sales finally got the push it had been waiting for over the last 3 years. It was as if COVID awakened a monster called demand.
It’s crazy to think that the last 3 years’ narrative has been all about oversupply and how NYC is precariously edging toward disaster due to the too many new apartments coming to the market.
In late August this year, students were literally willing to kill for a 2-bedroom apartment around Astor Place. (Ok, almost literally. We didn’t test it.)
At AVENUES Real Estate, we like to dig in and understand the forces of the market. And we think we know what caused this relatively surprising outcome.
|The COVID panic struck the small landlords hard, forcing them to offer concessions that no one could refuse. These offers successfully tempted renters who, until February of 2020, never thought renting in Manhattan could be a reality. Apartments were “flying off the shelves” and this took away a significant chunk of the supply so that by the summer of 2021, there were not too many apartments available for everyone who by now, wanted to come/return to NYC.|
|COVID didn’t just hit NYC, it hit everywhere. People who were tired of their sleepy towns, or just tired of hearing crickets instead of people, showed up in waves of migration to the Big Apple. The draw of the City’s energy, post lock-down, was stronger than ever.|
|While COVID took the spotlight, changes in June 2019 to rent regulations quietly went into effect, which basically diminished the destabilization of rent stabilized apartments by more than 90%. This in turn, added upward pressure on prices in a rental market that was already strained on supply.|
|We are curious to see how the market will respond to the strong demand, and we are happy to keep you informed.|
|If you need help renting, buying or selling your apartment, we’d love to help. Our knowledgeable agents are trained to offer you the best service – you’ll see when you meet us.|
|Want to know more about NYC real estate in the pandemic? Here are some more articles on this topic:|