Will NYC rents keep rising?
I have a nice studio and paid a pretty penny for it when I signed in October, ~$3k a month. Now the market seems to be going even more wild. Will this continue?
Would you advise to lock-in another year now? Or is there a shot the market comes back down or stabilizes over the next 7 months.
With the return to office now imminent for a lot of other industries (Tech being a leader here), my personal opinion is that there will be a flock of people heading back to the city. For the cohort that is about to graduate/ recent grads over the past 2-3 years, I think there is going to be a bigger migration to NYC than in the past in an attempt to get back lost time, at least that is what Tik Tok is telling me...... but IMO I would bet on NYC rising rents.
Your question is tantamount to 'when will inflation slow down?' and given that even the Fed chair got that grossly wrong, not sure anyone on WSO will give you the right answer.
Rent and housing will never go down as long as population growth and urban migration continues. There will be blips but over the long term it’s just not happening
Barring massive upheavals (like a global pandemic), rents only tend to move in one direction. There's not a lot of bets I'd be more comfortable making than NYC property values and rents continuing to creep upwards.
So to me the interesting thing about rising rents in NYC - no one has asked the question of where were rents in 2019 before the pandemic? Rents dropped during the pandemic and have climbed extremely steeply over the last 12 months. However, what people keep forgetting is, rents in 2019 were pretty much at the current level (if I have my facts straight). From that viewpoint, rents really haven't "risen", they've just come back to where they were and reverted to the mean. Unfortunately, NYC has always been super unaffordable.
I thought that rents are above pre covid levels?
Could be slightly. But my point being, in my opinion, you shouldn’t be looking at Covid rents and thinking that’s “true rent growth.” That was an abnormal occurrence. You should really be looking at pre Covid rents and current rents and that’s the true change (in my opinion). People can disagree with me, we all look at the market differently.
Depends on which submarket. They certainly have risen to prepandemic levels in fidi
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