The Future of Real Estate After Covid-19
Over the past couple of months, the world has changed greatly. The global pandemic has impacted our world in ways more than one. Our society and markets have seen lows it hasn’t seen in decades. As time went on, it was clear that most economies were at a standstill with no end in sight. In the United States, particularly big metropolitan cities such as Los Angeles and New York, lockdown became mandatory for months on end – which had uproaring consequences on the real estate market, particularly in New York.
New York City is among one of the most expensive cities and competitive housing markets in the nation. It is hard to imagine that such a strong and steady city in the real estate world would have such a hard-hit, but it did. New York City was one of the biggest hits by Covid-19 pandemic among all big metropolitan cities. So, the question everyone is asking… will New York City’s high end market ever recover after the steady decline since the pandemic hit? Let’s dive in!
The pandemic has made a crazy hit to the New York City luxury real-estate market at a record rate. So, what does this mean for rentals? In some high-end boutique areas, specifically in the West Chelsea district, there were remaining units for sale at a 46% discount! People are saying it’s almost as if the entirety of New York City has been on sale for the last 24 months.
There has been a rise in vacancies through the pandemic. But, is it all bad? We are seeing an interesting trend on the other hand. In neighborhoods that weren’t usually popular for renting, there is an uprise in attraction to a range of renters in areas that previously would have been unaffordable. Meaning, there is a new market emerging from the crisis interested. These new neighborhoods include: High Bridge, Saint Albans and East Brooklyn. In these neighborhoods, rent can be a little as half as much as a regular Manhattan average.
So, is it a buyer’s market right now?
It is a good time to buy a real estate investment property because the market is slowly warming up, and will continue to do so if things remain stable. It is a good opportunity for the right person interested that can afford the current market and then continue to rent, especially for short-term renters. Both as a renter and a buyer, you must do your homework on the trends. What areas will become more popular to travelers once New York City recovers from the pandemic? Where will people like to explore next? Will Manhattan still be the main focus, or will luxury real estate expand beyond the known? We expect that people will be interested in the amenities that come alongside the rental, more bang for their buck, especially with rent remaining high even during and after the pandemic. So, who can offer the most value for money in the market during and after a global pandemic? Only time will tell!