Covid-19 triggered a wave of price reductions and concessions for renters in the face of high unemployment and infection rates, amongst a multitude of other negative effects generated by the pandemic. The question now is, with so many New Yorkers returning back to the city, compounded by a large migration of out-of-state renters, what will the rental market look like from here on out?
It’s no secret that prices are starting to climb back up, but just how long will it take to get back to pre-pandemic prices? Many have declared that the market is finding a bottom, with lease and rental prices beginning to rise throughout all 5 boroughs; but the, at times, unbelievable sweeteners offered to renters during the pandemic are going to be hard to live without. From not having to pay broker fees to getting up to 5 months off a lease, the concessions were massively important in affording renters opportunities within their budgets especially at the worst of times. Inevitably, however, these concessions will disappear.
As the city slowly emerges from these perilous times, the market is already starting to shed concessions, raise prices, and offer longer lease terms. These trends will also be jeopardized by the impending termination of the statewide eviction moratorium, set for August 31st, and the muddiness of the Emergency Rental Assistance Program, which might not have enough funding ($2.4 billion) or support for the sheer volume of those in need.
Overall, however, pre-Covid-19 levels do not seem to be on the immediate horizon, so renters can rest assured that lower prices may very well continue for the foreseeable future.
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