MANHATTAN, NY — Rents in Manhattan are becoming cheaper as the coronavirus pandemic causes instability in the housing market, according to a new study from the real estate listing service RentHop.
Median one-bedroom apartment rents dropped 5 percent year-over-year in RentHop's analysis of New York City's rental market at the end of the second quarter of 2020. The plunge was driven by large dips in the median rent for one-bedrooms in neighborhoods such as the Flatiron District (10 percent decrease), Lincoln Square (9.2 percent) the Bowery (9.1 percent), Chelsea (8.8 percent) and Lenox Hill (8.6 percent).
"The coronavirus pandemic has had severe impacts on the New York City housing market. Many neighborhoods across the five boroughs experienced price reduction due to reduced demand. Specifically, in Manhattan, one of the most expensive real estate markets in the nation, rent dropped in most luxury neighborhoods," the RentHop study reads.
Analysts at RentHop believe that weak demand for Manhattan apartments will continue into the third quarter. New York City's coronavirus infection rate has managed to hold at acceptable levels according to the city and state guidelines, but companies may be hesitant to resume activity in the city as long as the pandemic remains a threat, according to the report.
Manhattan neighborhoods close to the borough's central business districts such as Murray Hill, Chelsea and Tribeca have seen the largest decrease in rental interest, according to the RentHop study. On the other hand, renters are becoming increasingly interested in outer borough neighborhoods such as Forest Hills, Crown Heights and Astoria.
The pandemic has also influenced which amenities renters desire in their new homes. Private outdoor space has supplanted doormen and access to a private gym as the most desirable apartment amenity. Interest in private outdoor space grew nearly 60 percent compared to the end of the second quarter in 2019.
RentHop analyzed all listings created on its platfrom between April 17, 2020 and July 16, 2020 in its study.