NYC Rental Market Trends for 2021
The pandemic was not lenient to the rental markets in New York. It caused uncertainties in the sector, which led to an inevitable low demand. This was primarily attributed to the closure of many small businesses and high rates of unemployment in the city. However, there has been an attempt to turn the pandemic situation around, resulting in the following dynamics in the rental market and real estate industry.
Administration of Covid-19 Vaccines
It has recently been evident that most people are leaving the city and few or no getting in. Measures have been in place to get employees back to offices and other working stations. It is geared towards curbing the vacancy rate by people occupying the city.
Nonetheless, it is not a walk in the park, and landlords and other stakeholders hope to regain the pre-pandemic levels of income and sales. However, speculations indicate that the rise back to the pristine conditions is likely to take a couple of years.
Quivered Rent for 2021
New York City’s rent status has been adamant for a perpetual duration. However, the pandemic has seen it stumble, with most areas experiencing hiked vacancies and low demand. For example, Manhattan, among the most populated areas in the city, recorded more than 6 percent. Also, rent has dropped by a significant percentage of about 10 percent, which is significantly higher. Its impacts are set to make the city “younger.”
Lifting the SALT Deduction Cap
Donald Trump’s Tax Cuts and Jobs Act has thwarted the industry. It began in 2018 and currently stands at a $10,000 cap on state and local tax deductions. Despite the critics trying to repeal it, none have been successful. There seems to be light at the end of the tunnel with projections that Biden will repeal them.
Low Priced Purchases and Sales
Even before the pandemic, the market did not stand on the best grounds. There was a large number of condominiums that weren’t sold, with an estimation of over six years for them to sell. It has resulted in discounted offers from individual buyers in an attempt to tame the situation. Developers need cash, and headlines have hit on banks’ foreclosure efforts.
About 1st American Properties Group 1 LLC:
1st American Properties Group 1 LLC stands out as a reliable ally in the bustling New York residential real estate scene. With a focus on swift and hassle-free transactions, they offer homeowners a refreshing alternative to the traditional listing process. Specializing in cash solutions, they cater to properties across Brooklyn, Queens, The Bronx, Manhattan, Staten Island, and Long Island. Whether clients are grappling with foreclosure, relocating, or simply seeking a rapid sale, the company’s seasoned team steps in with expertise honed over three decades. Built on a bedrock of integrity and transparency and co-owned by Avraham Glattman, 1st American Properties Group 1 LLC prides itself on delivering competitive cash offers tailored to individual needs, ensuring a seamless selling experience for each homeowner it serves.
Rental Insurance in NYC
There is a common misconception that if you are renting an apartment, your landlord’s insurance will cover your belongings in case of a disaster. This is not true; to protect your property, you need to buy renter’s insurance.
What circumstances does it cover?
Most renter’s insurance covers your property in cases of fire, theft, smoke, and water damage from sources like pipes and overflowing bathtubs; some insurance will also replace your property if it is damaged or stolen outside of your premises. Renter’s insurance can also cover liability if anyone is injured on your property (note that this generally does not apply if you sublet or rent out a property). It does not typically cover items broken by other people or animals, or flood. If you are concerned about natural flooding, consider purchasing separate flood insurance.
What items does it cover?
Renter’s insurance generally covers all valuable items, including televisions, computers, jewelry, clothing, exercise equipment, furniture, etc. Be sure to properly document the value of your possessions to pick the right policy. It’s also important to be aware of whether the insurance covers you on an “actual cash value” basis (paying for the current monetary value of the items) or a “replacement value” basis (how much it will cost you to replace the item with one of similar quality).
Who does it cover?
If you purchase renter’s insurance, it will cover you, your spouse, and the people directly related to you. You can generally also list up to two unrelated people on the policy, so if you have additional roommates, they will need to get their own policy. Please note that even if the roommates are on the insurance, if they purposefully steal or damage your belongings, it is unlikely to be covered.
How much will it cost?
Depending on how much coverage you need, renter’s insurance policies can cost as little as $125 a year, although you can save money by increasing your deductible. The price is dependant on how much property you need to cover and if you require additional coverage for things like jewelry, which are generally only covered up to $1000.
Where should I get it?
When searching for insurance, it can be useful to first look at companies established in your area. If you are dissatisfied with your options, you can search for more specialized insurance or use an insurance broker, who may be able to find something specific more easily.
The Current State of the NYC Housing Market
New York City has always been known for its astronomical housing market. A no larger force than the pandemic could have heavily impacted housing sales. With COVID-19, New York City’s boroughs have seen massive shifts in house sales and buyer behavior. To understand the current state, let’s look at the beginning of this tumultuous journey since March.
What is the Current State of the NYC Housing Market?
In a nutshell, the housing market is breaking NYC’s back. The impact of COVID-19 was immense, toppling house sales by 40% across all boroughs. Particularly since the lockdown began right at the busiest time for real estate, the effects have created a domino effect on the city’s budget and migratory behavior.
Some Boroughs were Hit Harder than Others
House prices are lower than ever, including that of Manhattan. The last time a Manhattan apartment went for $3000 was almost a decade ago. Manhattan was hardest hit by the mid-March reactionary lockdown. Apartments selling above $1 million experienced a steep drop this summer, according to Forbes and ABCData. While it has been gradually rising, Brooklyn has remained steadfast, flourishing in real estate.
Unfortunately, many of Manhattan’s richest have migrated elsewhere, with the taxes they could have paid to the city. Moving to other boroughs has racked up the market in Brooklyn and Long Island. For instance, there has been an increase of 34% for single-family homes and 38.8% for condos on Long-Island. As for the Bronx and Queens, and Staten Island, the borough underwent a dip in home sales between April and June (on average), and now are resuming their normal numbers.
The State of Renting and Employment
Meanwhile, the state of housing is challenging for renters and landlords. Unemployment was at an astounding high for renters, rising from 3.4% pre-pandemic to 20.3% midsummer. Either way, dismal unemployment rates are alongside lower rent, especially in lower-density areas. Whether renters are unable to pay rent or leave to find work elsewhere, landlords have no choice but to decrease rent. As for higher-density neighborhoods like Elmhurst and Jackson Heights, rent prices remain buoyant, not falling as much as other places.
Looking Forward: What to expect about the NYC Housing Market
Long-term, the projection for NYC is unknown. The pandemic could have negative implications for New York City’s lifeblood, financially and otherwise. What’s certain is that now’s the right time to grab onto the city’s more forgiving housing prices.
About Avraham Glattman
Avraham Glattman is the owner of First American Properties Group, a real estate business based in New York City, New York.
Avraham brings over 26 years of experience working as a real estate agent in the city, where he continues to work today. He graduated from Newport University with a Bachelor’s Degree in Business Administration and Management and remained at the university to attain his Masters of Business Administration (M.B.A.). After graduation, he jumped straight into the real estate field in 1992 in the greater New York City area. Throughout his career, Avraham has explored listings across the New York area, keeping a detailed account of the locations, pricing and comparable properties in the housing market.
After gaining a wealth of knowledge about the real estate marketing in New York, Avraham Glattman decided to take it a step further by creating First American Properties Group with his longtime business partner, Pete Jacov in 2008. First American Properties is a real estate and development company that services the five boroughs of New York. The company currently owns residential and commercial properties in Queens, Downtown Brooklyn, Harlem, and Manhattan. The company focuses on monitoring the growth and development in different areas of the city, so they can work to establish more patterns of growth and help revitalize the area.
While monitoring the different areas of New York City, Avraham Glattman consistently keeps an eye out on up-and-coming neighborhoods that he could potentially invest in. For example, after seeing Harlem, Avraham was immediately impressed by the neighborhood’s charm, leading him to invest in properties in the area. With a convenient location next to the subway and charming business like music venues in the area, it was not hard to see what attracted Avraham to the area.
Today, Avraham Glattman continues to find new investments with First American Properties Group, alongside his business partner, Pete Jacov. Together, they are working towards the goals that they set for First American Properties Group. The goals include acquiring property in the Harlem area to renovate and sell, as well as acquiring properties in all five boroughs.
Avraham Glattman is also the proud owner of 1927 Café Bar Popularr. Located in Harlem, the café serves a variety of open-faced Mediterranean sandwiches, called ‘Toastics’, and many types of coffee. Café Bar Popularr is proud of the rich artistic traditions of Harlem, and invites local musicians, authors, and comedians to visit and share their talents with friends.
Avraham was born and raised in Israel, where he went graduated high school. Not long after, he served in the Israeli army for three years, before he was sent to the United States to work with an Israeli newspaper in Brooklyn, NY. Not long after making the move to New York, Avraham met the woman that would become his wife in 1991. Together, they have three children.
In his spare time, Avraham Glattman enjoys spending his time with his wife and three children and loves to explore new parts of New York City. Avraham’s incredible dedication to both his work and family brings him immense happiness and purpose each day.
To learn more about who Avraham Glattman is, visit AvrahamGlattmanNewYork.com.
