UWS Rent Prices Could See One Of Biggest Coronavirus Drops: Study

UPPER WEST SIDE, MANHATTAN — A dive in rent prices in expensive Manhattan neighborhoods like the Upper West Side could be on the horizon as landlords struggle to find tenants during the coronavirus pandemic, a study found.

A StreetEasy analysis of apartment listings in May found that more and more landlords have been offering rent discounts, likely the first sign that overall rent prices will soon drop across the city.

The largest uptick in discounts — and therefore perhaps the biggest dive for future rent prices — was found in the pricey, central areas of Manhattan, which have lost their draw since the city shut down to fend off the pandemic.

"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."

The Upper West Side was one of several Manhattan neighborhoods where more than one-third of advertised rentals got a discount in May. In other words, nearly 33 percent of rent listings were cut that month compared to just about 19 percent receiving discounts in the neighborhood in May 2019.

The Financial District, Midtown West and Flatiron all saw similar increases in discounts.

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.

"For renters whose leases are up later in 2020, don’t worry: The growth in discounts now suggests that rent levels could decline through the year," they continued. "The COVID-19 pandemic has changed the landscape for NYC apartments, with falling rents a likely result."

To read the full study click here.