The NYC rental market is at an all-time high and it doesn’t appear to be cooling down anytime soon. Overwhelming demand for rental units has renters taking apartments sight unseen—the market is that tight. This not only has given landlords more leverage, but it also has sellers and homeowners looking at it as an opportunity.
As I mentioned back in April, it’s a safe, long-term investment for homeowners looking to rent out their apartments in this current market. The average rent was recently reported to be $5,000, so in most cases, owners would stand to profit nicely by renting out their homes.
As the sales market is slowing down and interest rates have spiked significantly since January, sellers are shifting their strategy. Rather than selling their units, homeowners are renting them out to take advantage of the current rental market. As one Williamsburg homeowner put it, “You’re putting your money to work in a really good way.”
And not only are “would-be” sellers looking to take advantage, but people looking to upsize as well. If you recall last month, I mentioned that “living space” has been and continues to be a top priority for New Yorkers since the pandemic. For homeowners upsizing to a larger home, there is now an opportunity to rent, rather than sell, their current units in this strong market. For most, they more than likely can profit to some extent, helping to cover the added costs of the new, larger apartment.
As I always say, everyone’s situation is unique. Please reach out if you would like to discuss what are the best options available that align with your real estate goals. I am happy to discuss and prepare a strategy that works for you.