Looking for a rental deal?
If you are looking for lower rents in NYC, the boroughs outside of Manhattan are usually your best bet. The pandemic, however continues to drastically change the New York City real estate landscape. A new report from RentHop shows that rents in some parts of Manhattan have dropped by double digits.
Using data on 1 bedroom median net effective rents in each NYC neighborhood, the findings showed that on average:
- Rent prices dropped an average of 6.25% across all neighborhoods we studied.
- 86% of neighborhoods saw rent prices decrease over the year.
- Only 11% of neighborhoods saw a rent increase; Inwood was the sole Manhattan neighborhood to see an appreciation.
- Coney Island was the hottest neighborhood of the year, with prices increasing 7.78%.
- Little Italy was the coldest, with prices decreasing 17.24%.
- New York City renters have strong negotiating power, with many landlords doubling their concessions since last year.
While rent drops were common across the city, pricier areas in Manhattan were hit the hardest. The only Manhattan neighborhood that saw a rent increase was Inwood. The largest rent increase was Coney Island, where rents increased by 7.8% percent. Elsewhere in the borough, Fort Greene saw a rent increase of around 3.7% percent. In Queens, rents in Kew Gardens were up 5.35 percent and in Briarwood they increased 2.75 percent.
It’s a challenging time for the city’s landlords as the vacancy rate in Manhattan has remained above 5 percent. The current climate strongly dictates a renter’s market and as a result, renters have strong negotiating power. Landlords have been dropping rent prices and also offering considerable concessions like free months rent and reduced deposits. Renters in NYC should always consider their options when negotiating. If you have been looking for a rental deal, now is the time to find a new place.
Beatriz Moitinho is a Real Estate Salesperson, specialized in Luxury Real Estate and a Productivity Coach at Keller Williams New York City.