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.
Founded by attorneys Andreas Koutsoudakis and Michael Iakovou, KI Legal focuses on guiding companies and businesses throughout the entire legal spectrum as it relates to their business including day-to-day operations and compliance, litigation and transactional matters.
Connect with Andreas Koutsoudakis on LinkedIn.
Connect with Michael Iakovou on LinkedIn.
This information is the most up to date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team, or fill out a new client intake form.