BY GRANT LANCASTER
Although it is too early to say what effect the COVID-19 pandemic will have on the city’s rental market, a study by real estate site StreetEasy looked to the post-recession rental market of 2008 for possible clues.
The Great Recession was the last time rents in the city fell, with pre-pandemic rents reaching record highs.
During the recession, rent fell as much at 10% due to increased unemployment and vacancy rates, with the least-expensive options falling the most, the study found.
In 2008, rent fell the most in Manhattan and stayed more stable in outer boroughs like Queens and Brooklyn, but StreetEasy predicted that in 2020 the outer boroughs will see rental drops as rapidly growing service-industry jobs in these areas suffer.
Manhattan has largely office jobs, which are not expected to be greatly affected.
At the moment, only the supply and demand has changed in the city, with the number of new rentals listed down by about 54% from the beginning of March to the end, according to the study.
Read the full study at streeteasy.com.
