What is Happening to New York Housing Affordability?

Dear Friends, first of all, I must mention that you need to focus on the positive things. Look for the blessings you have received from god. This way you will be more happy and grateful. Further, in this post, I am going to discuss the changes that happened in the affordability of Houses in 2020.

Who expected the kind of pandemic corona proved to in our lives. It not only makes us lose so many of our loved ones but also made things financially unbearable. It occurred across the world. However, we saw a huge impact in the USA.

If we talk about the affordability of houses from 2020 till March 2021, we can see that the people with income greater than 1 lac yearly have been little affected. They could spend less due to the pandemic. Additionally, they also observed a reduction in rent for their houses. 

We saw that Real Estate Marketing in New York was gaining momentum at the starting of 2020. The rental market was also doing pretty well. Then the unexpected pandemic made a big dent in the market. By the end of the year, we observed that the rent had fallen to the level not seen since 2010. Many renters had to face eviction. 

The growth New York achieved in the last decade was almost reversed by the corona pandemic. In 2020, Rents in New York Decreased from the average of $3500 per month to $2500 a month. The nearby boroughs and counties also faced the same fate. 

“The change was sudden. At the Kips Bay Towers, a luxury apartment complex designed by I.M. Pei, Ms. Moitinho leased a 500-square-foot studio for $2,595 a month in June. Three months later, she leased a similar unit on the same floor for $1,900 a month, a 27 percent drop. Another similar unit is now in contract for $1,800.” – Real Life Example

“Nationwide, there could be anywhere from about 760,000 to 4 million renter evictions in the first half of 2021, depending on whether Congress passes a $900 billion fiscal relief package, said Mark M. Zandi, the chief economist of Moody’s Analytics. In New York State, he estimated a range of 110,000 to 590,000 evictions.”

20% of the New York Population did not pay rent in September and was scared of the Eviction tsunami

Lots of people considered moving to suburbs. Due to this, the rent in affordable cities increased. On the contrary, as people migrated from expensive cities, rent decreased there. So, real estate worked quite opposite during the pandemic. Check the latest prices for the apartments for rent in New York NYC HERE. You can see there are numerous apartments available on rent under $2500

Rent Chart in New York City Since 2010 to 2020
Rent Chart in New York – From 2010 to 2020 Later

As a result, new ideas are happening, a new way of homes and arrangements are being developed by the private builders and also by the government.

Below picture show the current condition of the Apartments Available in New York NYC under $2000

Apartments on Rent in New York NYC Under 2000

Many of the experts do not hesitate to state that Real Estate has collapsed due to the pandemic in New York and surrounding suburbs and other cities around.

Housing affordability, as well as rent affordability, has drastically gone down. A great Housing reshuffling is taking place in New York. Many people are moving to suburbs or going to get country houses. hence the prices are set to increase in these historically cheaper places. 

The people who are going to stick to the city can negotiate for less for a better apartment. Nothing is working as usual in the Real Estate and Housing Market. Things are still crazy even after 10 months of the pandemic.

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