What you should know
- Rents in New York show no signs of falling, but that could help bring more inventory to market as the year progresses.
- StreetEasy’s latest market report finds Brooklyn on fire, thanks to new construction and changing work habits post-pandemic.
- The pandemic has had a seismic shift in the state of the city’s housing market, that’s clear. Since February 2020, the average asking rent across the city has skyrocketed 15%
Renters be warned: competition in the New York market is red hot again (if down at all) as spring inventory fails to keep up with demand.
A new report released on Monday by the rental ad platform StreetEasy found Brooklyn to be the most competitive borough among tenants. Medium ads received almost 100% more requests last month compared to ads in March 2019, according to the site’s market report (LINK). Across the city, this average hovers around 70%.
What’s sparking interest in Brooklyn? The increase in the number of new dwellings could be part of this. StreetEasy found that three out of every five new apartment developments in the city were in Brooklyn. New apartments that offer attractive amenities tend to attract tenants who can afford higher costs.
The drastic shift in the Manhattan office workforce post-pandemic could also be to blame.
Mortgage interest is high but property prices have fallen. To learn more about Telemundo, visit https://www.nbc.com/networks/telemundo
“Impulsed by the pandemic and a greater flexibility so that the workers move with less frequency to the offices of Manhattan, the inquilinos have not stopped bussing this day more in Brooklyn to encontrar space adicional has a less cost in comparison with Manhattan”, encontró The report.
But even as new construction bolsters supply in the county, growth in available inventory has slowed significantly. StreetEasy says the increase in mortgage rates last year has prompted some potential buyers to hold on. The number of new rental units has fallen (by around 25%) compared to 2019, in part because more tenants are renewing their leases rather than packing up and finding a new home.
And this drop in supply has only fueled more competition, which New York tenants have become accustomed to.
Of the five boroughs in March, Brooklyn suffered the largest drop in overall inventory, by a third. Manhattan and Queens also fell, but each was closer to 20%. The Bronx was relatively unchanged from 2019, while Staten Island’s numbers separated from the rest and climbed in the county by nearly 33%.
The pandemic has had a seismic shift in the state of the city’s housing market, that’s clear. Since February 2020, the average asking rent across the city has skyrocketed 15%. They reached a record in March ($3,344), barely surpassing the record set in October.
This means renters must bring in nearly $134,000 in annual income to keep monthly housing costs below the recommended 30% income. Right now, that’s almost double the city’s median household income. In 2021, that figure was $70,663.
But all is not lost for tenants. The StreetEasy report suggests there may be some hope for those looking to relocate.
The city’s rental inventory last month was up about 10% from the previous month. Landlords looking to strike while the iron is hot will likely take advantage of rising rents and put their vacant homes on the market.
“In Manhattan, typical asking rent was $3,635 in March, up 11% year-over-year. Rental inventory will continue to improve in Manhattan this year, and tenants who can afford to remain in the borough will likely see an increase in potential trading and a decrease in annual revenue growth,” the report adds.
The median rent in Queens is significantly cheaper, hovering at $2,396, but still 9% higher than last year. The typical asking rent in Brooklyn is $3,168.
“As buoyant demand continues to limit tenants’ bargaining power, as inventory slowly begins to build this year, tenants can expect to see slightly weaker competition compared to the year’s hot market. last.”
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