When hoards of tenants all across the city fled to the suburbs and more ideal living situations amid the Covid-19 pandemic, landlords felt the blow. Now, as the city attempts a return to normalcy, it’s the renters taking the heat.
The crowd of New Yorkers that stuck it out through the thick of lockdown restrictions were treated to some of the most impressive rental deals. Free-rent, upgraded amenities, and even gift cards were just a few of the incentives offered as landlords struggled to keep their apartments occupied.
For some renters, this was a way to upgrade their living conditions as they enjoyed the luxuries of buildings with swimming pools, dog services, and rooftop grills. For others, it was needed assistance when so many lost their jobs to the pandemic.
With memories of lockdown and pandemic hardships, renters now face their post covid battle: skyrocketing rent prices. Discounted rates and complimentary amenities are a thing of the past. Many now face rent increases of nearly 80%, according to real estate broker Adjina Dekidjiev. If you’re searching for an apartment in New York City, buckle up.
In November of 2020, the median rent in Manhattan hit a low of $2,743. Now, residents can consider $3,118 the new normal, according to Miller Samuel. In-person classes and the departure from “Work from Home” has kept demand, and subsequently rent prices, sky-high.
Many renters who signed cut-rates leases braced themselves for the end of their honeymoon renting period. Others were caught off guard when landlords pulled the plug on discounts and hiked up the rates.
Though the demand for housing in New York City has boomed in the aftermath of the pandemic, some landlords seem to be taking it too far. August saw 11.1% of New York City’s rentals advertised with discounts in some way, according to StreetEasy. Although this number is down from 31.2% a year ago, it’s up from 9.1% in July. Supply and demand played their course, and many landlords made adjustments.
Another incentive during the rental dry season was fewer rental broker fees. Renters also see this less exciting but helpful perk fade away. On the listing website StreetEasy, 68% of rental listings were marketed as “no fee” in September. This is a drop from 81% that we saw in April.
As apartment seekers adjust their expectations and adapt to increasing prices, New York City trudges on full force, leaving no rent payment uncollected.
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Authored by: Stanley Montfort
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