New Leases In Manhattan Plummet To 10-Year Low: Study

MANHATTAN, NY — Apartments in Manhattan are going empty as new residential leases dropped to a 10-year low in May, according to a new real estate market study.

Just 2,190 new residential leases were signed in May 2020, representing a 62.2 percent decrease from the 5,796 leases signed during May 2019, according to a new report by the brokerage firm Douglass Elliman and real estate consultants Miller Samuel. The figure represents the lowest number of new leases signed during May in the past 10 years, according to the report.

With new leases decreasing, residential vacancy is increasing, according to the report. Vacancy rates for Manhattan were recorded at 2.88 percent in May 2020 compared to 1.65 percent in May 2019. In addition to higher vacancy rates, there are 7,420 units on the market compared to 5,534 units last year.

These developments in Manhattan's real estate market are affecting rental prices, according to the report. Average rental prices dropped 1.8 percent year-over-year and rental prices per square foot dropped 2.2 percent year over year. Median rental price actually saw an increase of 1.3 percent year-over-year.

Real estate brokers have been forced to comply with social distancing measures put in place by the state to curb the spread of the coronavirus, which may explain the sharp decline in new leases. Prospective tenants are unable to visit apartments in-person until New York City enters "Phase Two" of its reopening. The city just entered "Phase One" of its reopening this week, and must meet state benchmarks on infections, available hospital beds and testing capacity for two weeks to advance.

Read the full Miller Samuel market report here.

This article originally appeared on the Midtown-Hell's Kitchen Patch