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COVID-19 Transforms Peak Rental Shopping Season in NYC

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Changes in renter priorities result in a record number of discounts on Manhattan rentals

New York, NY – July 17, 2020 (PRNewswire) As New York City faced the worst impacts of the coronavirus pandemic in the second quarter of 2020, the city’s real estate market reeled. Demand for rentals plummeted at a time when it normally rises, interest in the outer boroughs shot upward, and rents in Manhattan fell for the first time since the Great Recession, according to StreetEasy’s Q2 2020 Market Reportsi.

The period saw a record high for rental discounts in Manhattan: 34.7 percent of all borough rentals received a discount. Landlords cut a record 6.7% off the median asking rent in the borough, equivalent to $221 per month for the median apartment.

The same drop in demand also caused the StreetEasy Manhattan Rent Indexii to fall year-over-year for the first time since the Great Recession, sinking 0.9% to $3,236.

Yet while demand for new rentals fell, interest in those same apartments — as measured by anonymized StreetEasy user search data — rose over last year, especially in the outer boroughs. Stay-at-home-orders drove a flood of interest in online resources and home shopping, and StreetEasy searches for rentals in all three boroughs analyzed increased over last year.

Brooklyn saw the biggest jump in user interest, with 26% more searches than 2019, while Queens searches rose 24%. Even searches for Manhattan rentals increased at 15% year over year. This data suggests that in addition to renters with expiring leases who were looking to move, many were watching curiously to see how the pandemic might impact New York City’s historically high rents.

Landlords, meanwhile, responded to the stay-at-home restrictions with a surge in virtual tour offerings. During the second quarter, real estate agents and landlords uploaded 54 times more walkthrough videos, and 10 times more floorplans, on rental listings than they did in the first quarter.

“Commuting to the office and living in the center of the city were simply not on the list of priorities for renters during this past quarter, and landlords reacted by slashing rents and trying new tactics in order to attract tenants,” says StreetEasy EconomistNancy Wu.

“Landlords are in for a much slower than normal summer rentals season, even as the city slowly begins to reopen. Remote work has given many renters the option to live anywhere they please, making it too soon to predict when rents will rebound.”

See below for additional sales and rental market trends across Manhattan, Brooklyn, and Queens.

Rents and Home Prices Fall in Manhattan

The pandemic and surrounding health precautions caused the first year-over-year drop in Manhattan rents since the Great Recession. The StreetEasy Manhattan Rent Index fell 0.9% to $3,236. Rents dropped the furthest on the borough’s most expensive apartments, with the top quintile, or the most expensive 20% of the market, seeing a 1.4% decrease in rents to $6,325. Sales prices also fell, with the StreetEasy Manhattan Price Indexiii down 4.1% from last year to $1,062,276.

Brooklyn Home Prices Drop at Fastest Rate in 7 Years

The StreetEasy Brooklyn Rent Index increased 2.6% to $2,728, the slowest pace of growth since the fourth quarter of 2018. More than 1 in 4 (25.6%) rentals were discounted during the second quarter, an increase of 8.6 percentage points year-over-year. The StreetEasy Brooklyn Price Index fell 1.6% to $687,160, marking the largest year-over-year drop in home prices in seven years. Sales inventory was down 31.5% compared to the second quarter of 2019.

Queens Rents Climb, But More Slowly

Rents in Queens continued to climb, but at the slowest pace in two years. The StreetEasy Queens Rent Index rose 1.2% to $2,196 during the second quarter. More than one in five (22.5%) rentals were discounted in the borough — an increase of 4.7 percentage points from last year, and the largest share of discounts since the third quarter of 2018. Home prices in Queens remained flat compared to last year at $507,321.

View all StreetEasy Market Reports for Manhattan, Brooklyn, and Queens, with additional neighborhood data and graphics. Definitions of StreetEasy’s metrics and monthly data from each report can be explored and downloaded via theStreetEasy Data Dashboard.

About StreetEasy

StreetEasy is reimagining the way people buy, sell, and rent homes in New York City and New Jersey. Used more than any other local real estate platform, StreetEasy’s website and mobile apps provide vetted and verified listings, plus intuitive search tools and data-driven guides to help people unlock the opportunity of living here. Consumers and real estate professionals can stay up-to-date on the latest real estate trends throughStreetEasy’s Market Reports and explore and download market data for free on theStreetEasy Data Dashboard. Launched in 2006 and based in NoMad, Manhattan, StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and ZG) and is a registered trademark of Zillow, Inc.

i The StreetEasy Market Reports are a monthly overview of the Manhattan, Brooklyn and Queens sales and rental markets. Every three months, a quarterly analysis is published. The report data is aggregated from public recorded sales and listings data from real estate brokerages that provide comprehensive coverage of Manhattan, Brooklyn and Queens, with more than a decade of history for most metrics. The reports are compiled by the StreetEasy Research team. For more information, visit https://streeteasy.com/blog/research/market-reports. StreetEasy tracks data for all five boroughs within New York City, but currently only produces reports for Manhattan, Brooklyn and Queens.
ii The StreetEasy Rent Indices are monthly indices that track changes in rent for all housing types and are currently available from January 2007 in Manhattan, January 2010 in Brooklyn, and January 2012 in Queens. Each index uses a repeat-sales method similar that used to calculate the StreetEasy Price Indices. The repeat method evaluates rental price growth based on homes in a given geography that have listed for rent more than once. More details on methodology here.
iii The StreetEasy Price Indices track changes in resale prices of condo, co-op, and townhouse units. Each index uses a repeat-sales method of comparing the sales prices of the same properties since January 1995 in Manhattan and January 2007 in Brooklyn and Queens. Given this methodology, each index accurately captures the change in home prices by controlling for the varying composition of homes sold in a given month. Levels of the StreetEasy Price Indices reflect average values of homes on the market. Data on the sale of homes is sourced from the New York City Department of Finance. Full methodology here.

SOURCE StreetEasy

Home Sales and Inventory Fall as Coronavirus Disrupts NYC Home-Shopping Season

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New York, NY – April 24, 2020 (PRNewswire)

Key findings:

  • Prior to COVID-19, Manhattan sales prices had fallen to a six-year low, and rents had reached new highs in all boroughs analyzed.
  • Coronavirus precautions prompted buyer activity to slow dramatically, with 58% fewer pending sales in the last two weeks of March compared to the first two weeks.
  • New inventory fell 73% in the second half of March compared to the first half of the month. New rental listings fell 52% in the same period.
  • The amount of walkthrough videos on StreetEasy more than quadrupled in March from February as the real estate market adjusted to social distancing restrictions.

Before the coronavirus pandemic hit New York City, sales prices were falling and rents were heating up rapidly, according to the StreetEasy Market Reportsi. As the first quarter of 2020 approached its end, the NYC sales market appeared poised for another competitive home-shopping season, with more sellers adding homes to the market, and buyers ready to use their negotiating power amid falling prices.

In the two weeks before the quarter ended, the pandemic’s impact on daily life intensified, and, as social distancing became the norm, uncertainty shifted the real estate market’s outlook. Citywide, there was a significant drop in new sales inventory, with 73% fewer new sales listings added to StreetEasy between March 15 and March 29 than in the two weeks prior. Buyer activity dropped off, too: 58% fewer homes went into contractii in the last two full weeks of March compared to the first two weeks.

The rentals market felt similar effects. New rental listings fell 52% in the second half of March compared to the first half. While asking rents changed minimally, 20% fewer landlords offered a rent cut on their unit at the end of the month than the beginning. Rather than offer discounts, many landlords have chosen to keep their units off the market until the pandemic slows.

Buyers, sellers, renters and agents also changed their behaviors to adapt to the stay-at-home order and public health protocols. The addition of walkthrough videos to listings on StreetEasy increased 330% in March over February.

Since March 15, daily walkthrough video views jumped eightfold on rental listings and threefold on sales listings. StreetEasy also launched 3D Home® tours to help NYC home shoppers continue their search through an integration with the Zillow 3D Home app.

“Economic uncertainty is causing understandable hesitation from buyers, sellers, and renters,” says StreetEasy Economist Nancy Wu. “In the best-case scenario, home-shopping season has simply been postponed for a few months. With so many variables – including how COVID-19 may spread, and other policy and economic reactions to the virus – it’s too soon to try and predict what will happen. But if coronavirus does in fact trigger a global recession, we could see prices and buyer activity levels mimic what happened during the 2008 financial crisis.”

“Nevertheless, activity continues for those who need to move for life events, or renters who must sign a new lease. New Yorkers are nimble, and our adaptation to the times and quick adoption of new technology is like nothing this city has seen before.”

See below for additional sales and rental market trends across Manhattan, Brooklyn and Queens.

Q1 2020 Key Findings — Manhattan

During the first quarter, the StreetEasy Manhattan Price Indexiii dropped 3.2%, to a six-year low of $1,073,104. Prices have not changed since the stay-at-home order took effect, but that could change in the coming months. The StreetEasy Manhattan Rent Indexiv also reached a record high of $3,324 – up 3.4% annually.

Q1 2020 Key Findings — Brooklyn

Before the coronavirus pandemic, rents in Brooklyn were growing at the fastest rate in the city — 5.2% year over year, reaching a record high of $2,755. To adjust for the high rents, more concessions were also offered by landlords. The share of units that advertised a concession in Brooklyn rose 4.8 percentage points to 14.5% in Brooklyn. The StreetEasy Brooklyn Price Index remained unchanged from last year at $704,783.

Q1 2020 Key Findings — Queens

Prices in Queens remained flat for the third quarter in a row, at $512,533. Prior to 2020, prices in the borough had been increasing rapidly for seven years since their upturn after the Great Recession. Homes in Queens spent a median of 85 days on the sales market — an uptick of 9 days compared to last year, and the longest period in seven years. Sales in the borough could slow even more due to the coronavirus pandemic. Rents in Queens rose 3.5% annually to $2,215 – a new high for the borough.

The complete StreetEasy Market Reports for Manhattan, Brooklyn, and Queens, with additional neighborhood data and graphics, can be viewed here. Definitions of StreetEasy’s metrics and monthly data from each report can be explored and downloaded via the StreetEasy Data Dashboard.

About StreetEasy

StreetEasy is reimagining the way people buy, sell, and rent homes in New York City and New Jersey. Used more than any other local real estate platform, StreetEasy’s website and mobile apps provide vetted and verified listings, plus intuitive search tools and data-driven guides to help people unlock the opportunity of living here. Consumers and real estate professionals can stay up-to-date on the latest real estate trends through StreetEasy’s Market Reports and explore and download market data for free on the StreetEasy Data Dashboard. Launched in 2006 and based in NoMad, Manhattan, StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and ZG) and is a registered trademark of Zillow, Inc.

i The StreetEasy Market Reports are a monthly overview of the Manhattan, Brooklyn and Queens sales and rental markets. Every three months, a quarterly analysis is published. The report data is aggregated from public recorded sales and listings data from real estate brokerages that provide comprehensive coverage of Manhattan, Brooklyn and Queens, with more than a decade of history for most metrics. The reports are compiled by the StreetEasy Research team. For more information, visit https://streeteasy.com/blog/research/market-reports. StreetEasy tracks data for all five boroughs within New York City, but currently only produces reports for Manhattan, Brooklyn and Queens.
ii StreetEasy defines pending sales as homes that are marked as “in-contract” on StreetEasy. An offer has been made and accepted, and the closing is pending.
iii The StreetEasy Price Indices track changes in resale prices of condo, co-op, and townhouse units. Each index uses a repeat-sales method of comparing the sales prices of the same properties since January 1995 in Manhattan and January 2007 in Brooklyn and Queens. Given this methodology, each index accurately captures the change in home prices by controlling for the varying composition of homes sold in a given month. Levels of the StreetEasy Price Indices reflect average values of homes on the market. Data on the sale of homes is sourced from the New York City Department of Finance. Full methodology here.
iv The StreetEasy Rent Indices are monthly indices that track changes in rent for all housing types and are currently available from January 2007 in Manhattan, January 2010 in Brooklyn, and January 2012 in Queens. Each index uses a repeat-sales method similar that used to calculate the StreetEasy Price Indices. The repeat method evaluates rental price growth based on homes in a given geography that have listed for rent more than once. More details on methodology here.

Wave of NYC Home Sales May Point to Strengthening Market

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April’s rise in sales and dip in new listings should give hope to NYC sellers, according to the StreetEasy April 2019 Market Reports

New York, NY – May 23, 2019 (PRNewswire) The number of for-sale homes going into contract spiked in April, particularly in Manhattan, an indicator that the NYC sales market may be strengthening. Pending salesi in Manhattan increased 26.6% from last year, reaching their highest levels since the spring of 2015 — an encouraging sign for New Yorkers looking to sell their home this year.

While more homes went into contract, less inventory hit the market. There were 9.6% fewer homes listed for sale in Manhattan this April compared to last year, and total sales inventory available in the borough grew at the slowest pace in a year. In Brooklyn and Queens, inventory growth slowed significantly from the highs we saw in March. New inventory increased by 2.2% in Brooklyn and 13.4% in Queens in April compared to an increase of 31.6% and 26.3% respectively in March.

Price growth remained weak across Manhattan, Brooklyn and Queens. The StreetEasy Manhattan Price Indexii fell to $1,105,595 — down 5.2% from last year and the largest drop since the financial crisis. Prices in Brooklyn were also down 0.4% from last April, dropping to $706,582. In Queens, prices continued to grow, but at the slowest pace since 2016 — up 2.4% to $516,739.

“While many sellers are still struggling to attract a buyer, April brought some good news to those who have feared a continued slide in the sales market,” says StreetEasy Senior Economist Grant Long. “Early signs tell us that some sellers are finally pricing their homes more realistically and finding buyers when they do so. Those still struggling to find the right buyer should take this as a sign to revisit their pricing expectations. Buyers are out there, but with most of the bargaining power in their hands, they’re going to continue to hold out for more reasonable prices.”

See below for additional sales and rental market trends across Manhattan, Brooklyn and Queens.

April 2019 Key Findings — Manhattan

  • The most homes went into contract since 2015. The number of pending sales in Manhattan increased 26.6% from last year, up by more than 250. The number of homes entering contract in Upper Manhattaniii doubled year over year, from 66 to 132.
  • Inventory growth slowed. While sales inventory growth remained in the double digits at 10.8%, it still moved at the slowest pace in 13 months. The volume of new inventory hitting the market shrank by 9.6% over last year.
  • Prices continued to drop. The StreetEasy Manhattan Price Index fell 5.2% from last April — down by $60,096 to $1,105,595, the lowest level since May 2015.
  • As sellers priced homes more strategically from the start, fewer made price cuts. The share of homes with a price cut fell slightly for the first time in 13 months. Some 14.1% of Manhattan homes saw a price decrease in April — down 0.6 percentage points from last year. The share of price cuts fell the most in the Upper West Sideiv — down 2.1 percentage points to 14.2%.
  • Luxury home inventory dropped slightly. The number of homes for sale priced within the top 20% of the market fell by 0.3%, the first year-over-year decrease in inventory since February 2018.

April 2019 Key Findings — Brooklyn

  • Pending sales rose the most in the city. Of the boroughs analyzed, the number of homes entering contract grew the most in Brooklyn — up 30% from last April.
  • The pace of inventory growth slowed. In April, 2.2% more homes were added to the market than the same time last year, pushing for-sale inventory in Brooklyn to a new high.
  • Brooklyn prices stagnated overall, and dropped significantly in North Brooklyn. The StreetEasy Brooklyn Price Index fell just 0.4% since last year to $706,582. In North Brooklynv, the borough’s most expensive submarket, prices fell at the fastest pace since 2011 — dropping 2.0% to $1,120,548.
  • The share of price cuts rose slightly. Borough wide, 11.6% of homes for sale were discounted — up 1.5 percentage points from last year. All five submarkets in the borough had an increased share of price cuts, though North Brooklyn saw the most, with its share of discounts increasing by 1.8 percentage points to 11.7%.
  • Homes spent more time on the market. Brooklyn homes for sale spent a median of 60 days on the market in April — up 11 days from last year. Homes in South Brooklynvi came off the market three days faster than this time last year, to a median of 65 days on the market.

April 2019 Key Findings — Queens

  • More homes entered contract than last year. Following a similar trend to the rest of the city, Queens saw 10% more pending sales than last April. In Northwest Queensvii, 4.1% more homes entered contract over last year, but the submarket experienced a significant drop from the month prior, with 100 more pending sales in March than in April.
  • Sales inventory growth slowed. While total inventory rose by 21.1% in the borough, it was the smallest increase since last summer. New inventory added to the Queens sales market in April was up by 13.4% year-over-year.
  • Prices grew, but at the slowest rate in two years. The StreetEasy Queens Price Index reached $516,739 — up 2.4% from last year. Price growth in the borough showed signs of slowing from the higher rates seen since 2016, including the peak growth rate of 7.3% which occurred in June 2018.
  • Price cuts rose slightly. The share of price cuts in Queens was the smallest out of the boroughs analyzed at 9.9%, up 1.3 percentage points from last year. Northwest Queens saw a decrease in the share of price cuts — down 2.6 percentage points to 12.4%
  • Homes spent more time on the market. Homes in Queens spent a median of 57 days on the market — an increase of 9 days from last year, but the shortest period of the boroughs analyzed.

The complete StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and graphics, can be viewed at streeteasy.com/blog/research/market-reports/. Definitions of StreetEasy’s metrics and monthly data from each report can be downloaded at https://streeteasy.com/blog/data-dashboard/.

About StreetEasy

StreetEasy is New York City’s leading local real estate marketplace on mobile and the web, providing accurate and comprehensive for-sale and for-rent listings from hundreds of real estate brokerages throughout New York City and the NYC metropolitan area. StreetEasy adds layers of proprietary data and useful search tools to help home shoppers and real estate professionals navigate the complex real estate markets within the five boroughs of New York City, as well as Northern New Jersey.

Launched in 2006, StreetEasy is based in the Flatiron neighborhood of Manhattan. StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and ZG).

StreetEasy is a registered trademark of Zillow, Inc.

i StreetEasy defines pending sales as homes that are in-contract. An offer has been made and accepted, and the closing is pending.

ii The StreetEasy Price Indices track changes in resale prices of condo, co-op, and townhouse units. Each index uses a repeat-sales method of comparing the sales prices of the same properties since January 1995 in Manhattan and January 2007 in Brooklyn and Queens. Given this methodology, each index accurately captures the change in home prices by controlling for the varying composition of homes sold in a given month. Levels of the StreetEasy Price Indices reflect average values of homes on the market. Data on the sale of homes is sourced from the New York City Department of Finance.Full methodology here.

iii The Upper Manhattan submarket includes Hamilton Heights, Washington Heights, Inwood, West Harlem, Central Harlem, East Harlem, Manhattanville and Marble Hill.

iv The Upper West Side submarket includes Lincoln Square, Upper West Side, Manhattan Valley and Morningside Heights.

v The North Brooklyn submarket includes Greenpoint and Williamsburg.

vi The South Brooklyn submarket includes Sunset Park, Bay Ridge, Dyker Heights, Bensonhurst, Bath Beach, Gravesend, Borough Park, Kensington, Coney Island, Brighton Beach, Ditmas Park, Seagate, Flatbush, Midwood, Sheepshead Bay, Manhattan Beach, East Flatbush, Canarsie, Flatlands, Marine Park, Bergen Beach, Old Mill Basin, Greenwood and Gerritsen Beach.

vii The Northwest Queens submarket includes Astoria, Long Island City, Sunnyside and Ditmars-Steinway.