The NYC Rental Market is Bouncing Back

I hope the first few weeks of 2023 were going well for you.. because it also went well for me!

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I just recently closed a new deal, so I'm pumped and curious to know what this year will offer!

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And so, things are improving for the New York City real estate market. Despite record-breaking rent increases, the sector is entering a phase in which rental inventory is climbing back up.?

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According to an?article on StreetEasy.com , the number of available rental units last December increased by 2.6% from last year. While it's not much, the number could lead to other encouraging developments later in the year.

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Let me round them off for you...

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Lower rents in 2023

Last year wasn't a field day for renters when the Fed — for the first time in three years — decided to raise its benchmark interest rate to reduce the impact of inflation.?

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When homes started becoming less affordable, buyers turned to rent. This also caused the demand for rental housing to skyrocket along with rent prices.?

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The city is already implementing (or at least discussing) possible policy changes that could provide renters with more than just temporary relief.?

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For one, it's already?limiting short-term rentals ?via Airbnb and reviewing local zoning laws to see if vacant commercial spaces could be converted into affordable housing.?

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Other than that, the Big Apple has also issued?more construction permits ?compared to the past two years.?

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At this point, it's difficult to know exactly if these changes could pull rent prices down. But I'm sure current inventory challenges won't persist and will give way to more breathing room to price out New Yorkers.?

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Beyond the usual neighborhoods

NYC is never a stranger to monster rent increases. And since the start of the pandemic, it has seen record-breaking price hikes in sought-after neighborhoods such as Hudson Yards and Bed Stuy. Now that these areas have become the least affordable, renters (including newcomers to the city) are setting their sights on more forgiving neighborhoods.?

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Places like Homecrest in Brooklyn and Inwood in Manhattan are getting a lot of attention from eager renters looking for affordable deals. Price isn't the only factor because renters are also looking at how likely landlords will offer concessions.?

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As more affordable units become available outside of Manhattan and Brooklyn, landlords in these boroughs will have to open themselves up to concessions and lower their asking rents.?

Before saying that 2023 isn’t shaping up to be a good year for the NYC rental market, we should look into what’s really happening on the ground. Amid fears of a possible recession in the national real estate sector, the challenges won’t be too great to affect market confidence.?

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If things go better than expected this year, we could see the real estate pick up where it last left off before the pandemic started.?

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All you need is to get timely advice so you will always be on top of the ever-changing climate. If you are buying an apartment to add to your real estate investment portfolio, it pays to work closely with a qualified real estate professional.?

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Let’s connect so I can help you find the best deals in the best neighborhoods in the NYC real estate market! Call me at?917-627-5677 ?or send an email to?[email protected] .

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I’m looking forward to hearing from you. Let’s navigate the real estate market together!

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Talk soon,

Eli?