Are there still good deals to be had in the New York City post-COVID market?

It’s no secret that the New York City real estate marketplace is back. And back in a big way. The luxury sector is breaking records, and mid-level properties are seeing huge transaction numbers. But there are still facets of the market that are lagging, and that’s where the best deals can be found.

The Rental Market:

The mass exodus of New York City residents took a huge toll on the rental buildings and landlords, who make up almost 60 percent of the city’s total housing market. The rental market was reeling by late June 2020, and vacancy rates soared to a staggering 30-40 percent. With people renegotiating rental rates 25 percent to as high as 50 percent off of their previous rents, nobody thought the rental market would recover – at least anytime soon. But rentals have already begun to bounce back. There were a few weeks last month where the market signed over 1,000 leases in a one-week period. Those are stunning numbers! The kind of numbers usually reserved for a typical summer market. But overall, pricing is still 25 to 30 percent off from pre-pandemic levels, and there are still impressive deals to be had in rentals. It’s a segment of the market that is still clawing its way back, and it probably won’t be at 100 percent again until sometime mid- to late-spring 2022. The rental market needs a full reopening and a return to universities and offices. It needs Broadway, movie theaters, restaurants, bars, nightclubs and everything that makes New York City great. The rental market is reliant on that, so it’s going to take some time yet.

The Sub-$500,000 Market:

The lowest end of the price spectrum is a market segment where buyers can secure significant discounts — if you make a move today! As in, right now! Like renters, the first-time buyers typical in the sub-$500,000 market tend to be very Manhattan-focused. They are rarely found in their small studio or one-bedroom and spend the bulk of their days and nights enjoying New York City to the fullest. Right now, this buyer pool is renting at a 30 percent discount or enjoying huge returns in the stock market on what would’ve been their down payment into a purchase, or they’re lingering on the sidelines for whatever reason. The stock market is delivering 20 percent returns on their would-be down payments, so why pull it out? They may even be paying half as much renting their current space than if they bought it, so why pull the trigger on a mortgage? But, looking at the bigger picture, purchasing that $325,000 studio that sold for $425,000 just last year would be a great way to create equity quickly and make their way up the apartment ladder to their dream unit in record time.

While Manhattan real estate is breaking records weekly – there are still facets of this market that buyers and renters can take big advantage of if and when they return to the city. They are trickling back already and will do so in droves soon as Mayor De Blasio has set his sights on a full reopening of the city by July 1. So act now if you still want to take advantage of a rare and rapidly recovering market.

Local Events

Macy’s Flower Show 2021

May 2-16, 2021

Macy’s (socially distanced) 2021 Flower Show theme is "Give. Love. Bloom, a Floral Celebration of Fortitude." The two-week exhibition of exotic flowers & plants from around the world returns to transform Macy’s Herald Square in New York City into a breathtaking floral extravaganza. Learn more here.

Governors Island Activities

Governors Island will officially open to the public starting May 1, ringing in the start of the fun outdoor season in NYC. Ferry trips will be free to seniors, public housing residents, children and those with an NYC ID card. All month long the island will be hosting events including "glamping" and 5K and 10K races. Learn more here.

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