New York City's real estate market is bonkers, but it usually boils down to some pretty consistent trends, like being expensive as hell and only getting more expensive.
But that may not be true forever, being that the amount of vacancies in Manhattan is at a nine-year high right now.
It's unlikely rents will drop drastically, but landlords are agreeing to more concessions in order to attract renters.
These concessions are basically incentives, like landlords paying the broker's fee.
It sounds nice, but that's what they're offering instead of lower rents. Take what you can get, right?
The data comes from Douglas Elliman Real Estate, and it shows that rents are still on the rise, but the amount of landlords offering these concessions is rising fast in an attempt to fill vacant rentals.
These vacancies accounted for 2.3% of the market this time last year and have risen to 2.9% this year, lighting a fire under landlords to do something about it-- without lowering the rent.
The Elliman Report reflects the landlords' efforts to attract renters with concessions almost tripled in the last year, from 4.8% to 13.5% of all transactions.
While the highest amount of vacant properties in almost ten years is a telling sign, it doesn't mean your rent is going down anytime soon, necessarily.
Elliman's Jonathan Miller, who wrote the report, noted that, "Rents are still rising. A lot of that is because landlords are trying to keep up face rent while keeping vacancy down."
It makes sense from the landlords' perspective, but really this is the equivalent of a bank giving you a free toaster for opening an account.
When all is said and done, the amount of fees and such you'll pay into that account will drastically outweigh the cost of a toaster to a bank-- in very much the same way that these concessions are really just a little bonus.
Maybe soon they'll offer incentives like... lower rent?