The Manhattan rental market sinks leaving 15000 empty ments apartments

The Manhattan rental market sinks leaving 15000 empty ments apartments

A man enters a building with rented apartments on August 19, 2020 in New York City. The city has been given the highest number of retail and ments apartments left to be rented after a coronavirus epidemic after moving out of New York.

Eduardo Munoz Alvarez | Press Scene | Corbis News | Getty Images

The number of vacant partitions rented in Manhattan nearly tripled compared to last year, as more New Yorkers fled the city.

There were more than 15,000 vacant rented apartments in Manhattan in August, up from 5,600 a year earlier, according to a report by Douglas Aliman and Miller Samuel. The list of vacant units is the largest record ever since data collection began 14 years ago, the report said.

Analysts say the rental market is the best barometer of overall strength in Manhattan’s real estate market, as rental apartments account for 75% and that market responds more quickly to demand for change than the sales market.

Experts say the migration from the city to the suburbs in the meantime Covid-19 crisis Manhattan tenants have left the city with large amounts of fuel.

Jonathan Miller, CEO of Miller Samuel, said the rental market is weak and weakening. “Most first-time buyers in outlying areas come from the Manhattan rental market.”

Hoping for a turn again in the fall or late 2020 seems more unlikely. Although rental prices have come down – average rental prices have fallen by 4% in August Gust – the discount is not yet high enough to lure new tenants back to the city. The average rent for a two-bedroom in Manhattan is still $ 4,756 a month.

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The fall in the Manhattan rental market is usually a slow period, especially before the election, Miller said.

Landlords are always offering big incentives in an effort to entice tenants, with the largest proportion of landlords offering relief in history. On average, landlords were offering 1.9 months of free rent to new tenants in Ren Gust. The lower end is in the weakest segment of the rental market, for a bedroom and a studio, in part due to the epidemic affecting the lower earners.

The average rental price for studios fell 9% to 2, 2,574, while the average rent for one-bedroom apartments fell 5% to $ 3,445.

The big question for Manhattan’s economy and for that is how far the economic wave will spread from the weak rental market. While large homeowners like REITs and real estate companies have access to capital, small moms with one or two buildings and pop-up homeowners may have difficulty paying their mortgage and property taxes, which later hurts banks and lenders, as well as New York’s tax revenue. .

“Where you’re already looking at homeowners at the lower end of the stress spectrum,” Miller said. “You’re clearly seeing weakness in the small end of the rental market.”

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