Empty Manhattan Apartments Reach Record Levels, Homeowners Reduce Rent

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The number of apartments available for rent in Manhattan reached record levels in June, with brokers still unable to host exhibits amid the coronavirus pandemic and more renters having left the city, according to a new report.More than 10,000 apartments were listed on the market in June, an 85% increase from June 2019, according to a report by Miller Samuel and Douglas Elliman. The official vacancy rate hit a record 3.67% but is much higher in many buildings, according to brokers.

Analysts say the growing number of empty apartments is largely due to foreclosure, which kept brokers from showing apartments until June 22. But the exodus from New York has left an increasing number of vacant apartments and fewer new tenants arriving to fill them. .

“The state mandate that prevented real estate brokers from physically showing property has been removed before the last week of the month, which is running out of time to have any meaningful influence on market conditions,” the report said.

In order to fill all these vacant apartments, the owners are lowering prices and offering ever-increasing incentives. The average rental price, including concessions, fell 8% in June, the report said. A room in Manhattan will still cost you an average of $ 3,400, more than double the national average.

However, almost half of all new leases in June had concessions or discounts, and landlords generally offered free rent for a month and a half.

The weakest segment of the rental market is that of large family rentals. Brokers say that many families who would normally rent in the city have moved to the suburbs where they can have a yard and more space.

The number of new leases signed for three-bedroom rentals in Manhattan was down 42% in June from the previous year. Downtown Manhattan and the East Side are the most affected, with a 41% drop in downtown rentals and a 49% drop on the East Side.

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