"We're seeing declines in all apartment sizes. It's not like they're just studios. In general, everything is weaker," said Jonathan J. Miller, president of Miller Samuel Real Estate Appraisers and Consultants and author of the Douglas Elliman report.
This leads to a market where tenants, not apartments, are in demand. Here's what you need to know in order to close a deal in a market prepared for you.
Not all neighborhoods or apartments are created equal
The city is not monolithic, and neither is the decline in rents. A StreetEasy report found that rents in the neighborhoods least affected by the pandemic fell 1.9 percent, but rose 0.3 percent in the hardest-hit neighborhoods like Corona, Queens.
"It's really a story of two cities in New York," said Nancy Wu, a StreetEasy economist.
With so many people working from home, neighborhoods like Long Island City and the Financial District that once attracted commuters are losing to those with more space or lower prices like Ridgewood or Elmhurst, Queens. "People keep moving to neighborhoods that they would not have thought of," said Ms. Wu before the pandemic.
There are still offers in these parts of the city. Michael Johnson, a spokesman for the Community Housing Improvement Program [CHIP], a trading group for 4,000 home builders and administrators, said his organization's members offer an average of 1.4 months of free rental in buildings across the city. "Don't get caught up in geography," he said. "It's more about the price of the apartment." Homes that would have earned a premium in any neighborhood, such as those that have recently been renovated or are in newer buildings, are most likely to be hit by discounts.
When looking for a quote, consider an apartment with a flaw that other tenants may not want to accept, such as B. a walk-in place or a place that is far from the train and services. "If there's something you can handle that other people can't, like in a dark room, sit in the driver's seat for negotiation," said Noble Novitzki, the chief operating officer of Nooklyn, a rental company.
Do your homework
When rents have come down, it's hard to know whether the advertised price or the rent you are currently paying is fair. Do some homework before contacting your landlord or making a counter-offer for an apartment that you like.