Historic rent drops continue across NYC, What does this mean for this big city?

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Rents in New York City dropped by the largest year-over-year pace on record in March, plunging 15.5% in Manhattan and 8.6% in both Brooklyn and Queens, according to StreetEasy, an online real estate marketplace.

The historic upending of the Manhattan market started when wealthy renters left the city during the lockdown in the spring for the crabgrass and picket fences of the suburbs, contributing to a housing boom in the region’s outer cities.

In addition, a large number of Manhattanites are also buying houses in Brooklyn, which caused a large increase in sales in the district after the closure.

This is creating a glut of apartments available as opportunities for those still renting in this city to upgrade their homes and negotiate what they pay.

What does this fall represent for this Manhattan?

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This is an opportunity for people from other states who previously found the rent very expensive there, consider to live in Manhattan.

“I've always liked New York, but the prices are very expensive”, “It is a big city, but it also carries a lot of expenses” These are some comments from people who love this city, but cannot afford the big budgets of living there.

Many New Yorkers spend more on rent than they can comfortably afford. In 2018, nearly 53 percent of New Yorkers were rent-burdened because they spent more than 30% of their gross income on rent, according to the NY times.

Now, with prices, a little lower, many people are considering both renting and buying. According to Fox5NY , renters are offering up to four months of free rent.

But while falling rents may have sparked renewed interest in the city's rental market, the economic damage inflicted by the coronavirus pandemic will take many years to unravel.

Although many people are interested in the city and many people will want to return again, this does not mean that the rents will return to good prices again. For everything to return to normal, it is estimated that it will take between 3-5 years.

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