New York Rental Crisis: Thousands of Vacant Units Force Rent Reductions and Increased Commissions to Attract New Tenants
The COVID-19 Situation Continues to Impact the United States, Recently Affecting the Real Estate Sector as Rental Apartments in New York Surge
The number of rental apartments in New York City, USA, continues to rise due to the effects of the COVID-19 pandemic and the economic situation. Currently, there are over 15,963 vacant apartments available for rent as of September, compared to just 5,299 vacant apartments during the same period last year, representing nearly 6% of the total. In normal times, the vacancy rate is typically only 2-3%.
As the number of available rental apartments increases, it inevitably impacts landlords, who must devise strategies to attract new tenants. This includes raising commissions or even reducing rental rates, and in some cases, offering new tenants two months of free rent.
Currently, rental prices for apartments in New York have decreased by 11%, with an average rent of $3,036 per month (approximately 94,449 THB). For lower-tier apartments, studio rents have dropped by over 14% due to economic impacts affecting low-income workers in the service and restaurant industries.
This decline in rental prices raises the question: will it attract new tenants?
A real estate expert noted that the reduced rental prices in New York are unlikely to draw in new tenants, as renters are well aware of the risks faced by landlords, whose businesses seem to be hanging by a thread.
Additionally, another factor contributing to the rising vacancy rate is the high crime rate and unemployment. Therefore, even with lower rental prices, it is unlikely to entice new tenants to move to New York.
Lower Average Rent Does Not Mean Affordable Rent
Although the number of available rental apartments has been steadily increasing, forcing landlords to lower rental prices to attract new tenants, the reality is that rental prices in New York are still not cheap.
On average, the rent for a one-bedroom apartment is $3,307 per month (approximately 102,880 THB), while a two-bedroom apartment averages $4,817 per month (approximately 149,856 THB).
Source – cnbc
SOURCE: brandinside.asia/new-york-apartment-vacancy-rate-increase/
