New York City has always been known to have outrageously high rental prices, never ceasing to drop. But 2017 may be a historic year for renters in the Big Apple.
A new New York Times article reveals that after decades of rental prices climbing to “historic highs, the momentum has stalled”.
The reason? An influx of over 25,000 new rental units between 2016 and 2017, combined with outflux of residents to peripheral neighborhoods. While a majority of these new rentals are luxury rentals, transformed from condominiums into city apartments, many people are moving into new popular neighborhood such as Brooklyn, Jersey City, and Crown Heights for lower rental prices.
As a result, many landlords and brokers have been compelled to begin offering deals never before: many are offering one-, even two-months’ free rent, for a one or two year’s lease, many also offer to pay for the broker’s fees, which is around 15% of a year’s worth of rent. Other landlords are offering creative small deals, such as $300 gift cards, guarantees of no rental increases, or waiving amenities fees.
Landlords and brokers in New York City will need to be prepared for this top line adjustment, and landlords and brokers across the country should take this shift in the rental market in New York as a sign that perhaps their cities are due for a rent adjustment.