Real estate prices continue to drop in Manhattan

Local News
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NEW YORK — During the height of the pandemic, people fleeing the city for more space took its toll on the city’s rental market.

With near record inventory, Nancy Wu an economist at StreetEasy says it could be a while before the rental market rebounds in Manhattan, but that could be good news for your next lease with landlords offering concessions.

“Rents have fallen a lot over this past year, over 12% already and we anticipate that to continue into and throughout 2021,” said Wu. “I would sign a longer lease if I can. I think that the rents could start going up once more people are moving back to the city, maybe not in 2021, but definitely in 2022.”

With 74% of homes selling below asking price and interest rates at record low levels, Wu says 2021 could be one of the busiest home buying years on record in the five boroughs.

“While rents in Manhattan may take a while to bounce back to their pre-pandemic levels, experts here in Brooklyn the experts say they could be in for a faster rebound after they found increased popularity during the height of COVID-19.”

Manhattan and Brooklyn have proved popular destinations.

“There’s been a shift from Manhattan to Brooklyn, where now without having to commute to work, a lot of buyers are thinking about having more space, more affordability, and not worrying about their commute to work.”

Don’t expect the prices to last too long, however. Despite fears of an urban exodus, Wu says many people are already planning their return to the Big Apple.

“The city is going to be very different next year, but as soon as it is safe for people to gather again, people will remember that there is no better place to do so than New York City and the city may even cater to more people than ever before.”

Even if that might be hard to imagine right now.

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