There is an expectation that the growth of rent in New York City will be much slower in 2024, according to the housing market predictions made by the real estate firm StreetEasy. At the same time, the report predicts that there will continue to be more demand for homes in the city than the amount of units available and thus preventing rents from falling.
While the expectation is that inventory in New York City will further grow in 2024, it will still be smaller than the pre-pandemic levels. As a result, the rent growth across the city will continue to rise, but at a slower rate compared to 2023. The median asking price for rents in New York City rose 9.3% year-to-date 2023. As a result of the higher rents, more homes are being put onto the market as rentals. Over the same period, rental listings on StreetEasy rose 8.8%. Elevated rents and high mortgage rates will encourage more home owners to rent their space in 2024. This will then provide renters with more listings to consider when they decide between either renewing their lease or finding a new place to live.
Despite the recent increase in supply across New York City, the rental inventory in 2023 is still 16.2% less than the pre-pandemic level seen in 2019. This is unlikely to change in 2024, as the city would need to add at least 40,000 more rentals in order to reverse the post-pandemic decline. Even before the pandemic, from 2017-2019, inventory only rose by approximately 21,000 units per year.
StreetEasy does predict Manhattan is one borough that will likely see a drop in asking rents due to more inventory becoming available there. With more inventory, landlords would then have more competition attracting potential tenants, leading to smaller prices.
Another prediction for 2024 that StreetEasy made was that the hottest commodity will be new, amenity-rich condos. Despite the high premiums for these units, StreetEasy predicts they will grow in popularity in 2024. Resale listings are expected to remain…
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