As the city approaches the pre-COVID pace, rental prices are soaring

Morgan White was due to move to New York last fall for a new job, but due to an increase in COVID-19 numbers, her job allowed her to postpone her move to April.

But despite the fact that bidding wars, long queues and rising rental prices began to feel like the norm for many in the fall, she said she wanted her to be able to return to what was then in the rental market.

“I would be happy to pay those prices, knowing what to expect,” said White, 34.

The median rental price in February rose nearly 24 percent in Manhattan, 10.5 percent in Brooklyn and 14.5 percent in northwest Queens from the previous year, according to a monthly apartment rental report by Douglas Aliman.

“It’s a complete round of what we had a year and a half ago,” said Jonathan Miller, president and CEO of Miller Samuel Ltd., a real estate appraisal company, about the reversal of the market since the worst of the plague. 2021

“Over the past year, rents have gone up like a rocket ship, basically,” he added.

White said her budget allows her to spend more than $ 3,900 a month.

But even with this budget, one-bedroom or studio, she said that the search for a rental in Manhattan was difficult. Hudson Yards with her office, she looked for neighborhoods like the Upper West Side, Chelsea and the West Village. She was unlucky in those areas, so she expanded her search to the East Village, the Upper East Side and Hell’s Kitchen.

“I’m looking everywhere at this point, and the inventory is just not there,” she said. “What that absurdly priced.”

The reasons for the inflated market, mainly concentrated around the town back its pace before the pandemic, according to experts.

First, the market is returning to pre-epidemic leases, which means innovations are occurring around July, August and September, according to real estate insiders.

“In 2020, people moved out of these apartments and no one else moved in, so by the time they rented, they were no longer on the July-July schedule,” said Anna Clanker, a licensed real estate salesman at Compass. 15 to 18 months to repay them for the summer. “

This cycle creates a crowded market as the city progresses in the spring and into the summer, especially when college graduates return or stay in the city for work.

Also, many people simply renew their leases instead of moving elsewhere, which contributes to the low vacancy rate, she said.

The rate of vacancies in Manhattan fell to -1.32% in February, the lowest level since February 2008.

People are also looking for more space because they continue to spend more time at home.

Adam Ellis is a comic artist and illustrator living room with two bedrooms with a mate in Fort Greene. When both work from home, he said they decided it was time to upgrade to three bedrooms.

“Everything I liked and tried to apply for, they told me you had to bid,” said Alice, 35. “Everyone is running.”

He said it was a struggle to find anything that works, even with their combined budget of US $ 5,000 to 8,000.

Ellis said he found one he liked apartment near DUMBO area of Brooklyn for $ 5,500 and applied for.

He said the agent immediately returned to him and asked him to make his highest bid. Because he really liked the apartment, he offered $ 1,500 over the asking price. But someone else offered $ 2,000 more and got the apartment, he said.

Wars proposals began to show themselves last year became routine now, say experts.

“We’ve seen them more, but now, about one in five renters rent above the landlord’s request, and that’s pretty amazing when you think of such normal incidents,” Miller said.

The housing situation raises questions about who can move to the city and who can continue to live here.

At the height of transactions related to COVID in 2020 and early 2021, Miller called the flow of people into Manhattan “Renaissance of youth”. People normally could not afford to move to Manhattan began now to finish these rental transactions.

Miller said people who took advantage of the deals “were attracted to the city because of falling rental prices, and could not stay in their place specifically, simply because the rate of renewal would be much higher than they had paid before.”

Indeed, current rental market depends on people whose parents can support them, According Klnkr.

“There are not necessarily enough people here to fill all of these self-contained units, but homeowners speculate that most New York graduates after graduation have parents earning more than 80 times the monthly rent that can secure their lease,” he said. Klanker.

The search for an apartment did its thing from White, who is now wondering if she has a future in this city.

“I think, ‘Oh my God, at the age of 34, I have to go back to Memphis and stay with my mother until it works out?’ Because it does not show signs of improvement and it just makes you feel – as someone who did a lot in his career, and who earns technically decent money – obviously not earned enough that I can not afford anything, “she said.

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