It seems that the mass exodus we witnessed two years ago when the pandemic hit New York City has reversed course. New Yorkers are returning to this great city and we’re also seeing newcomers from the tri-state area and beyond. As a Senior Research at Apartment List describes, “New York City had one of the largest declines in the first stage of the pandemic and one of the fastest rebounds.”
Although Manhattan has seen the largest gain in population, it doesn’t make up for the initial loss. While we’re in a much better place than we were just a year ago in terms of the pandemic, some offices are still allowing their employees to work remotely, at least part-time which may account for a small percentage of people not eager to return. Tight inventory in both the sale and rental markets may be one of the reasons why they’re holding off on moving back.
Another deterrent for renters is Tuesday’s announcement that the NYC Rent Guidelines Board voted to increase rent for one- and two-year leases by 3.25 percent and 5 percent respectively, for rent-stabilized apartments.
However, also worth noting is that the number of people moving out of the New York metro area is outpacing the number moving in—this is a trend that began prior to the pandemic. Despite this, the market remains competitive with buyer demand still high. More New York renters are also now considering buying given the purchaser's monthly expenses are less costly than rent.
City and state officials are also taking measures to help boost NYC’s economy recovery by creating a blue-ribbon panel to develop strategies and solutions for the city’s revival. For now, the city is still working on regaining its footing and I have no doubt we will see more people flocking back or relocating to THE city that will always stand tall and thrive.