If you are like most people, New York, or rather the city that never sleeps, is probably on the lists of places you’d want to visit or even stay in. The simple thought of seeing and taking pictures in Times Square or at the Statue of Liberty or even waking up to tall skyscrapers is enough to make you do anything to make it a reality.
However, all we hear about New York might be just that, stories, and some are too good to believe. If NYC is as thrilling and glamorous as the jockeys claim it is, how come it was ranked 90th out of 125 in the 2019 list of the best places to live in America?
But before we sound judgmental, we have to agree that each city has an equal share of monsters as it has angels. And this can’t be further from the truth.
In this post, we will explore the New York housing sector to try and find out what makes it so trendy. Excited? Let’s dive straight in!
The State of the New York housing market during the Covid-19 pandemic
To start off, for a city to be ranked, several factors are considered, including;
*Health care availability
All these factors determine the quality of life a city can offer its residents. And if New York was ranked 90th, then it means that the city is probably not as glamorous as the media paints it.
In 2020, while most American cities were making big cuts in home sales, New York was trailing far behind, and reports even predicted the city was headed for its infinite downfall. Indeed, in the first and second quarters of 2020, 254,500 households relocated from New York.
At the time, the state housing market could be summarized as follows;
*Reduced rent prices
*Rental spaces were readily available
*High rates of relocation
*Significant incentives offered by landlords
However, 2020 is history now and NYC is slowly regaining its lost glory. New York house and rental sales have skyrocketed and exceeded pre-pandemic prices. And though other cities in the country are way ahead, New York is coming in strong.
Huge rental discounts
This increase could be attributed to the deep rent discounts offered during the previous year. Renters enjoyed lower asking rent prices, including 1-4 months concessions and waived fees on amenities offered by nearly 24,360 apartments in New York (or about 43% of the total).
Statistically, rent prices dropped to $2,750 per month, a 21% drop compared to the previous year. As expected, tenants were left scrambling for new apartments in the luxurious parts of the city, with everyone trying to get the best possible deal.
However, this discount has returned to hunt these lucky residents as rent prices for monthly rentals in New York have hiked by about 40%, with the concession leases expected to expire in early 2022. In late 2021, the median rent had also increased to nearly $3,475 per month, an average 24% increase compared to 2020.
The luxurious market
Additionally, the luxurious market of the city encouraged most of the affluent renters from Brooklyn, Manhattan, and Queens to move back to the city.
But even as the once-affordable city slowly fades, it is no secret that New York housing is gaining a lot of popularity not just in America but globally.
By the end of 2022, the New York housing market is expected to grow bigger and busier as more people shift from international travel and the suburbs, with much of the credit going to the locals and domestic buyers.
Politics have also been one of the driving forces in the rise of NYC housing markets. For example, they have influenced tax deductions on property and increased loan limits for both landlords and tenants. But these could see the prices of housing rise more.
The impending doom
One of the downsides of the growing state of New York’s housing market is an inevitable doom for renters. Most of them are at the risk of being evicted due to increased rent prices they can’t match or afford.
Reports show that about 166,000 households had to get rental assistance to clear overdue rent in late 2021. What’s even worse is the fact that a lot of these renters have not been approved for rental assistance.
What’s next for NYC’s housing industry?
New York’s housing industry is expected to grow even more in the coming years as more domestic and international renters bid for the best deal. This might help change and improve the quality of life for residents.
On the downside, this rise will also see most renters lose their homes if the rent prices continue to increase. Talk of market forces and their ruthless effect on one of the most robust housing industries in the world!