The number of vacant apartment buildings in Manhattan continues to grow as the effects of a recent construction boom and the COVID-19 crisis converge within the city's real estate market.
CNBC reports that the number of apartments for rent, or listing inventory "more than doubled over last year and set a record for the 14 years since data started being collected," highlighting the fact that the number of new leases signed over the last year has fallen by 23%.
Jonathan Miller, CEO of Miller Samuel, the real estate appraisal firm that authored the study cited by the report, tells the CNBC, “The outbound migration is higher than the inbound migration right now."
While talk of excess supply in the city's real estate market has been on the rise in recent years, with most critics citing the region's overdevelopment of luxury high-rise apartments and condominiums as a principal reason for the glut, the latest report indicates that vacancies are rising across the affordability spectrum.
The trend, if it continues, could spell greater trouble for New York City's already precarious financial situation, as landlords become unable to pay property taxes on their buildings and missing residents further deprive city coffers of needed revenue.
5 Comments
Does the fact that "vacancies are rising across the affordability spectrum" provide support for a "trickle-down" theory of housing affordability? Is it just reflective of the global / US economic post COVID-19 downturn? Or perhaps something more specific to the NYC market?
COVID is influencing people in different ways. Low-end market is bad due to job losses and uncertainty. High end people are on the sidelines waiting for the inevitable price cuts on the premium stuff.
Wait... are those... glass shipping containers in that header image?
The person at HdeM who said "Let's make the operable windows look like cheap wide-stile storefront doors" needs to be demoted.
Hope those are stop-limited tilt-turns...
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