New York rents fell 2.8% in October from the previous month and have fallen 15.3% since the pandemic began in March. This is evident from Apartment List's November 2020 New York rental report.
Since the pandemic began, New York has declined the second fastest among the 50 largest cities in the country. Compared to October 2019, rents have decreased by 17.0%.
Currently, the median rents are $ 1,619 for a one-bedroom apartment and $ 1,703 for a two-bedroom apartment in New York. After rising last December, rents have fallen for ten months in a row. Year-on-year rental growth in the city is below the national average of -7.0% and the national average of -1.4%.
Despite the city's current troubles, Marty Burger, CEO of Silverstein Properties, a New York office and apartment developer and owner, believes the situation will improve once people get back to work.
"I think the apartment will of course follow the office," Burger told GlobeSt.com. "New York City itself is hurting on the multi-family side right now because the offices are not manned and the companies don't require their people to be here. The people who occupy these places don't feel the need to be in town. "
According to Burger, occupancy rates among homeowners have declined by 10%, 15% and 20% as workers don't have to be in town.
"The attractions aren't open, the Broadway shows aren't open, and people don't feel the need to be here," says Burger. "When these things come back, we'll start filling the apartments again."
While the national rent index is down 1.4%, performance varies dramatically, according to Apartment List. Since the pandemic began, San Francisco saw the largest drop in rents at 21.7%. It was followed by New York, Seattle (-14.0%), Boston (-13.6%) and San Jose, California (-12.2%).
Landlords in smaller cities benefit when tenants want to leave expensive subways. The largest rental growth since the pandemic was in Boise, ID (9.4%), Toledo, OH (8.4%), Chesapeake, VA (8.2%), Greensboro, NC (7.9%) and Reno, NV (6.6%). .
Some homeowners in the Southeast are seeing a surge in demand in their portfolios.
"We're seeing real population shifts," said William Spransy, CFO of North Carolina-based Eller Capital, in a previous interview with GlobeSt.com. "I believe the demand in the Carolinas is still extremely high as the pandemic has only accelerated the trend of migration from the more populated areas to lower-cost, lower-density regions in the southeast."