Hell's Kitchen Rents May See Coronavirus-Related Dip, Study Says

HELL'S KITCHEN, NY — Landlords in Hell's Kitchen are offering more discounts and special offers this year due to troubles attracting new tenants during the coronavirus pandemic, which means rent decreases may be on the horizon, according to a new report from the real estate listing site StreetEasy.

More than one-third of StreetEasy's apartment listings for Hell's Kitchen are being offered with discounted rents applied after units are advertised on the site, according to StreetEasy's analysis. Of the 1,547 Hell's Kitchen apartments listed on StreetEasy, 33.4 percent are being offered with discounts.

Cuts to a unit's overall rental price are generally made when discounts fail to attract tenants, according to the StreetEasy study. Areas like Hell's Kitchen and Chelsea are seeing a drop in demand due to work-at-home orders implemented during the coronavirus pandemic to reduce the spread of infection.

"With many New Yorkers working from home, retreating to places outside the city this summer, or leaving permanently due to job loss, living close to Manhattan offices has simply become a less popular priority," the researchers said.

"COVID-19 has upended the typical trading of home space for close proximity to work and entertainment. Instead, many are choosing to get more space and greater affordability farther from the city center."

Overall, more than one in four rentals got a discount in Manhattan, the highest portion of the five boroughs. Though some outer borough neighborhoods, like Long Island City and Downtown Brooklyn, also saw signs of prices dropping.

"Growth in rental discounts like this is where any change in the market would likely appear first," the researchers wrote. "...Over time, as landlords rent more units at discounted rates and get a fuller picture of the market, they adjust initial asking rents downward."

The discounts didn't apply to all types of apartments equally, though.

Researchers said that rent cuts are most frequent on units priced between $2,000 and $5,000 and that discounts are rarer for apartments under $2,000.

Even so, potential renters should ask landlords about a price cut even when discounts aren't advertised in the listing, given that the changing market may make them more open to negotiating, the researchers advised.

To read the full study click here.

Patch writer Anna Quinn contributed to this report.