The number of apartments available for rent in Manhattan reached record levels in June, as brokers were still unable to host demonstrations in the midst of the coronavirus pandemic and, according to a new report, more tenants were leaving the city.
According to a report by Miller Samuel and Douglas Elliman, more than 10,000 apartments were launched on the market in June, an increase of 85% compared to June 2019. The official vacancy rate reached a record level of 3.67%, but according to brokers is far higher in many buildings higher.
Analysts say that the increasing number of empty apartments is largely due to the blockage, which prevented brokers from showing apartments until June 22. However, the New York City exodus has left an increasing number of vacant homes and fewer new tenants filling them.
“The government mandate that prevented real estate agents from physically showing real estate was canceled before the last week of the month, not enough time to have a significant impact on market conditions,”
To fill all these vacant apartments, landlords are lowering prices and offering ever greater incentives. The average rental price including concessions fell 8% in June, according to the report. A Manhattan bedroom still costs you an average of $ 3,400 – more than double the national average.
However, almost half of all new leases in June were linked to concessions or discounts, and landlords usually offered free rent for 1½ months free.
The weakest segment of the rental market is large, family-sized rents. Realtors say that many families who would normally rent in the city have gone to the suburbs, where they can have a garden and more space.
The number of new leases for three-bedroom apartments in Manhattan fell 42% in June from a year earlier. Downtown Manhattan and the East Side are hardest hit, with downtown rents down 41% and East Side down 49%.