Urban Apartments Eye a Long Road to Recovery
The freefall is over, but it might take a few years for urban apartments to fully return to their pre-pandemic form.
March 31, 2021 | Bendix Anderson | Wealth Management
As many Americans fled cities during the pandemic and generated a glut of empty apartments, landlords in Manhattan and other urban metros slashed rents and offered draw-dropping concessions, including covering moving costs, free internet, months of free rent and other sweeteners.
Now, with millions of vaccine shots going out daily and the promise of a post pandemic future drawing closer, things are beginning to change. As more lockdown measures are eased, prospective urban residents are being lured back by city life and lower rents. For example, in Manhattan in January the number of new deals jumped 94 percent year-over-year to 5,459. It was the largest one-year jump since April 2011, reported appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate.
Given the brightening prospects, the question for the sector is how long it might take for rents in top markets to completely bounce back. And while most observers are optimistic, the timeline will be years rather than months.
