New York, hit by coronavirus, could see rents drop as apartment rentals plummet

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Demand for apartment rentals in New York City has fallen sharply over the past month amid the coronavirus pandemic, with stay-at-home orders in place preventing realtors from showing homes in person.

New leases in Manhattan fell 71% in April from a year earlier, appraiser Miller Samuel Inc. and brokerage firm Douglas Elliman Real Estate said in a report on Thursday.

Demand for apartment rentals in New York has fallen sharply over the past two months.

Brooklyn rental leases were down 67%, with inventory down nearly 30%, while Northwest Queens was down 65%, with inventory down nearly 30%, according to The report.

The city’s housing vacancy rate rose to 2.42% last month, the highest in April in more than a decade, with a median rent price of $ 3,650. And with empty apartments, landlords may be inclined to make new deals with new or existing tenants, like rent cuts.

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“As ‘shelter-in-place’ rules are relaxed in the coming months, we expect rental prices to drop as job losses take a heavy toll on housing,” said Jonathan Miller, president of Miller Samuel, at FOX Business.

Overall, home prices are also expected to drop this spring, but could rebound by the end of next year. Economists at real estate website Zillow said earlier this week that home sales could fall 60% in the spring, as stay-at-home orders imposed across the country to mitigate the spread of COVID-19 crippled the country. American economy.

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