When the pandemic hit, one of its hotspots was New York City. And once the city closed down, many people fled to states such as Connecticut and Florida. In July of 2020, Manhattan’s vacancy rate hit a 14-year high. Since we have transitioned into a work-from-home society, people have realized the importance of owning a home. Homeownership rates have increased among Millennials, and the demand for homes keeps growing. What does this mean for bigger cities like New York? Bess Freedman, CEO of Brown Harris Stevens, joined us to discuss the NYC real estate industry.
Will this trend continue?
While it seems the “mass exodus” from New York City was detrimental to the state, people were leaving before due to its high taxes. Now, Freedman sees a smaller supply of homes in states like Connecticut and Florida. Since many people moved there at the beginning of the pandemic, it’s more difficult to get homes there. Not only are people buying them, but there’s also a shortage of materials like lumber. The NYC real estate industry has a huge supply, so Freedman sees sellers adjust their prices to attract buyers. NYC is an expensive place to live, but if sellers are lowering their prices, this may attract people to move back.
Is New York City dead?
We have never seen anything like this before. Those who left New York City and bought homes in other states caused a shift in the industry. Bold TV’s Philip Michael had development projects set for the city, but he put them on hold considering the current market. And now, many rentals in the city offer months of free rent if you sign a lease.
Is the city dead? With vaccines here, people are coming back to the city like they never left. Traffic is back, and restaurants are seeing more patrons. Freedman is also seeing a lot of Millennial buyers taking advantage of the lower rates in the city. “A lot of people like to write the obituary for New York City, right? It’s a headline. It’s a ghost town,” Freedman said. “It’s just not the case. We bounced back after 9/11. We bounce back all the time, and we will get back to a city of 60 million tourists in due time.”
For more on New York, check this out.