Coronavirus Causes Rent Plunge Near Many Subway Stops: Study

NEW YORK, NY — Rents near more than 150 New York City subway stations dropped in 2020, which means deals may be available in some of the most convenient, in-demand areas of the city, according to a new study.

The number of areas near stations that saw rent decreases in 2020 is 10 percent higher than the previous year, suggesting that proximity to mass transit may be less desirable for renters amid a global pandemic, according to the study conducted by the real estate listing site RentHop.

Rents decreased near 159 subway stops in 2020 compared to just 115 in 2019.

RentHop's study concludes that the coronavirus outbreak in New York City has cause residents to reevaluate the convenience of living near the subway. State and local officials ordered nonessential employees to work remotely during the pandemic to curb the spread of the virus, eliminating the need to commute. As a result, luxury buildings near busy transit hubs have had to offer discounts to entice tenants, bringing down median rents.

"As people relocate to other metro areas and suburbs, landlords across the boroughs are having trouble filling up the vacant apartments, especially those who own and operate luxury rental buildings," RentHop's study reads.

It's worth noting that 159 stops represents just 36 percent of the subway system, and that rent increased near 257 stops and held steady at 28 stops. Rising rents near subway stops can be explained by other factors affecting rent prices in the city such as gentrification and new development, according to the RentHop study.

Some of New York City's busiest subway stops in the wealthiest neighborhoods saw large drops to median rent prices this year, according to RentHop. Rents dropped 11.3 percent near 28th Street (6 train), 7.6 percent near Herald Square, 6.7 percent near 86th Street (4/5/6) and 5.1 percent near Times Square.

Price drops don't mean these areas represent a bargain. Rents near the Union Square station decreased 6.8 percent but remained some of the most expensive in the city with a median rent of $4,750 for a one-bedroom.

The trend seems to reverse for large stations in the outer boroughs, showing that development and gentrification may have a stronger effect on the rental market than the pandemic's effect on transit. Rents increased 6.7 percent at Brooklyn's Broadway Junction, 2.6 percent near Queens' Jackson Heights-Roosevelt Avenue station and 7.8 percent at 161st Street–Yankee Stadium in the Bronx, according to RentHop's study.

RentHop studied rents near subway stations by analyzing and comparing real estate listings for one-bedroom apartments from March 16 through June 15 for both 2019 and 2020. The study utilized MTA Lines and Stops data and Geographic Information Systems data for subway stops compiled by Baruch College to match listings with subway stops. Listings were matched to stops located within half a mile of a subway station. If a station did not have at least 50 listings within the half-mile distance, RentHop expanded the area to one mile.

Check out the full study here.