NYC Rent Prices Decrease As Apartment Vacancies Hit Record High

The rental market in New York City is taking its lumps due to the novel coronavirus pandemic.

Renters have been leaving the city in droves since pandemic-related shutdowns began in March, driving up the vacancy rate on rental apartments to a record 3.67 percent in June.

A CNBC report says the trend continued in July, and there are now 13,000 empty apartments in the Manhattan, an all-time high.

The vacancy rate in June was more than double that of a year ago, per a report from real estate firm Douglas Elliman and appraiser Miller Samuel. The vacancy rate was the highest level in the report's 14-year history, CNN Business reports.

There were also 85 percent more apartments listed for rent in Manhattan this year than last year. Available listings in Brooklyn and Queens also increased by 57 percent and 41 percent, respectively, from a year ago.

The widespread apartment vacancies have also forced rent prices to decrease, almost in-step with the vacancy rate.

The median rental price of $3,378 per month in Manhattan dropped by 4.7 percent in June, reversing rent increases seen earlier this year and last year.

About 45 percent of new rental transactions in June included some incentive for renters, like one or two months free of rent.

Despite those incentives, June saw the lowest number of new lease signings for that month in a decade.

Due to pandemic restrictions, there were only 8 days in June when apartments could be shown.

Photo: Getty Images

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