New York City residents are fleeing the Big Apple for cities in states like Connecticut, California, Florida, Texas, and even North Carolina. It’s not often that you read about an exodus of people from the nation’s most populous region.
“That drastic shift has resulted in a record 13,117 vacant apartments across Manhattan in July, according to a report by Douglas Elliman and Miller Samuel Real Estate Appraisers & Consultants. The number is a 122% increase over the previous year, which listed 5,912 apartments in July 2019.”Peter AitkenFOXBusiness
New lease signings have also dwindled to about 23% bringing the median rental prices from $3,521 in July 2019 to $3,167 last month. Aitken adds that New York is seeing the highest vacancy numbers in the 14-years that the aforementioned companies have put out their report.
It becomes very difficult to predict if residents will return to NYC after establishing a remote-work station elsewhere, considering many employers want to move into a work-from-home culture that extends past the pandemic.
But landlords have taken steps to incentivize prospective tenants such as offering free months on a lease to yield a reduced net rent. Aitken reports that on average landlords have offered 1.7 months free; while also making the effort to provide further concessions for tenants.