NEW YORK, Dec. 16, 2020 /PRNewswire/ -- New York City
rents have fallen more this year than they did during the Great
Recession, according to StreetEasy's November 2020 Market Reports.
Driven by the Covid-19 pandemic, Manhattan rents dropped the most out of the
three boroughs analyzed — falling a whopping 12.7% year over
yeari. In November 2020,
the median asking rent in Manhattan reached a 10-year low of
$2,800. During the Great Recession,
Manhattan rents decreased by about
10%.
In Brooklyn, rents dropped 6.3%
year over year, and the median asking rent was $2,400. After the 2008 financial crisis, rents in
Brooklyn fell by around 5%.
Meanwhile, Queens saw a 5.7%
annual decline in rents in November. This was a record large drop
for the borough, where rents remained relatively stable during
the Great Recession. The median asking rent in November was
$2,100.
Prior to the pandemic, NYC
rents had been steadily rising for about a decade. But the economic
fallout from Covid-19 has taken a severe toll on the market.
Our recent 2021 predictions report noted that a weak economy
results in a weak rentals market, which is reflected in the latest
data.
While rents plummeted, rental inventory continued to pile on. In
November, there were more than double the number of rental units
available than at the same time last year in New York City — a net increase of nearly
37,000 homes.
"We expected the rental market to match the weakness seen during
the Great Recession, but the fact that the market has surpassed
that level in less than one year shows how serious the crisis
caused by the pandemic has been," said StreetEasy
Economist Nancy Wu.
"The rollout of COVID-19 vaccines and plenty of great rental
deals will be the catalyst for many to return to the city, but
we're still a long way from the city's return to normal. Until that
happens, inventory will remain high and renters will continue to
enjoy deals that were unheard of a year ago."
See below for additional market trends across Manhattan, Brooklyn, and Queens.
One in Three Midtown Manhattan Rentals Were Discounted in
November
The share of apartments that had a rent cut in November
increased in all five submarkets in Manhattan, but Midtownii led the
way, with 30.7% of landlords discounting the monthly rent on their
units. That was an increase of 8.4 percentage points from last
year. Boroughwide, the share of rent cuts rose by 5.9 percentage
points year over year, to 27.2% in Manhattan.
Brooklyn Rents Fell Furthest in the Most Expensive
Neighborhoods
The median asking rent in Northwest
Brooklyniii, the borough's most expensive
submarket, was $2,800 — the lowest
it's been in eight years. Compared to last year, rents were down
5.1% in these neighborhoods. There were 21,670 rentals on the
market in Brooklyn in November, an
increase of 134% from last year.
Queens Saw the Slowest Growth in Rental
Inventory
Rental inventory across the borough was 75% higher than last
year in Queens. While this was a
sharp increase, it was the smallest of all boroughs analyzed.
Queens' population tends to be
more stable and less transient, which is why housing metrics do not
fluctuate as much as in other boroughs. Mirroring the rest of the
city, Queens rents did fall year
over year, but at the slowest rate in the city, at 5.7%.
View all StreetEasy Market Reports for Manhattan, Brooklyn, and Queens, with additional neighborhood data and
graphics. Definitions of StreetEasy's metrics and monthly data from
each report can be explored and downloaded via the StreetEasy
Data Dashboard.
About StreetEasy
StreetEasy is reimagining the way people buy, sell, and rent
homes in New York City and
New Jersey. Used more than any
other local real estate platform, StreetEasy's website and mobile
apps provide vetted and verified listings, plus intuitive search
tools and data-driven guides to help people unlock the opportunity
of living here. Consumers and real estate professionals can stay
up-to-date on the latest real estate trends
through StreetEasy's Market Reports and explore and download
market data for free on the StreetEasy Data Dashboard.
Launched in 2006 and based in NoMad, Manhattan, StreetEasy is owned and operated by
Zillow Group (NASDAQ: Z and ZG) and is a registered trademark of
Zillow, Inc.
i The StreetEasy Rent Indices are monthly indices
that track changes in rent for all housing types and are currently
available from January 2007 in
Manhattan, January 2010 in Brooklyn, and January
2012 in Queens. Each index
uses a repeat-sales method similar that used to calculate the
StreetEasy Price Indices. The repeat method evaluates rental price
growth based on homes in a given geography that have listed for
rent more than once. More details on methodology here.
ii The Midtown submarket includes Roosevelt Island, Midtown, Central Park South,
Midtown South, Midtown East, Midtown
West, Murray Hill,
Sutton Place, Turtle Bay, Kips Bay,
Beekman, Hudson Yards, Hell's
Kitchen.
iii The Northwest
Brooklyn submarket includes Downtown Brooklyn, Fort Greene, Brooklyn
Heights, Boerum Hill, Dumbo, Vinegar Hill, Red Hook, Gowanus, Carroll Gardens, Cobble
Hill, Columbia St. Waterfront District, Clinton Hill.
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SOURCE StreetEasy