Manhattan landlords are pulling unrented apartments off the market at an unusually elevated rate, tightening inventory while rents are low, according to the Wall Street Journal. Landlords say the decision to warehouse units is a necessary response to both regulatory and economic changes, including heightened tenant eviction protections during the pandemic.
- By the numbers: Building owners removed 1,814 apartment listings in Manhattan last month, which is more than three times the number of apartments removed from the market in February of 2020.
- Multiple factors at play: Many landlords are betting on a potential price rebound during the spring and summer leasing season, when the Covid-19 vaccine should become more accessible, the Journal noted. The current eviction moratorium also leaves owners in no rush to fill the units.
- Tenant Market: Reduced demand for Manhattan apartments during the pandemic sent median rental prices down more than 17% for the year ending in December. Rent concessions of up to 25% off the previous year’s rent have become common at luxury buildings, and tenants have more negotiating power than they ever had before. [WSJ]