About 15,000 apartments are left empty at the end of August, according to a report from Douglas Elliman and Miller Samuel. This data has been the largest ever recorded since the collection began about 14 years ago. Additionally, hopes of recovery by the end of the year are slim.
More New Yorkers have been leaving the city due to the increased risk of contracting COVID-19. According to Jonathan Miller, CEO of Miller Samuel, the Manhattan rental market has weakened considerably over the last two weeks since the pandemic started, and is expected to get even weaker.
On April 15, 2020, New York became the COVID-19 epicenter in the U.S., which ultimately led to the death of about 30,000 people. Governor Andrew Cuomo has announced several steps to reopening the metropolis city, including the opening of restaurants for 25% indoor service.
This move comes months after the city has virtually locked itself down and is one of the remaining few areas that are still in a ban. The decision has resurfaced two months after Mayor Bill de Blasio and the governor halted plans that allow indoor dining and is a significant move to jumpstart the process of recovery of New York City.
Reinfection rates in the state have been stabilized at below 1 percent for the past month, and the officials think it is time they take the next step. Plenty of the remaining New Yorkers have expressed their relief over the development, as the economy of the city has suffered huge losses since the pandemic.
It brings good news to restaurant owners, but for the real estate market, the future is still grim. Manhattan renters have moved out of the city even before the pandemic. And now, they are leaving by droves once again. Rental prices have come down to 4% in recent data for August, but it seems like the discounts are not enough to lure patrons back.
Don Peebles, a real estate developer, has already anticipated this slow economic recovery for the city. He states that although chances of recovery for the metropolitan are high, it will take longer, and a new New York City will undoubtedly be the future. The CEO also states that the city will become more affordable and that the whole process of getting back to its feet might take ten years or more.