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Comment by hyperpl | Hacker News Reader

Anyone know stats on NYC? I'm having trouble understanding the current true state wrt to apartment rental pricing: many people left during Covid but I'm not quite sure if many of those in fact returned.

Furthermore, it would seem as though rental inventory is quite low or at least demand is through the roof (typically one needs to be ready to sign on the spot) with little to no room to shop-around. Prices are also quite high, I understand we have been in a recent high inflation regime but I just can't help but think the apartment rental market isn't as transparent as it was say, 3+ years ago.

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There are many incentives in NYC that prevent rents from dropping. What we saw during the pandemic was static rent prices with increased benefits that lowered the actual price, for example last month is free so in effect rent has been lowered by 1/12 while still being listed as 12/12. Landlords do this for a variety of completely [redacted] reasons, including price controls, taxes, vacancy regulations, credit for "improvements", advertising histories. Rents do not fall in NYC, they merely stop rising for a time.

The main reason they do it, IIRC, is because the banks handing out the landlords loans require some minimum rent prices on the leases in the loan contracts. The way they get around this is by offering a month or three of free rent. That way the leases signed by the tenants still me the contractual obligations of the bank.

In the end the tenant still gets screwed when the lease comes up to be renewed, unless they are willing to move out over negotiating another free month in the next cycle.

There was a big price spike in late 2021 to the present for rents. There was an amazing opportunity in early 2021 for a super negotiation position.

Unfortunately the people came back all at the same time, seemingly.

The state is booming with low vacancy, that's the present state

I think a lot of people got covid deals, and at over 12 month leases. For example, getting a 12 month lease plus some number of free months. Some of these people are still in their apartments. Meanwhile, a lot of people are trying to move to the city and there's just less space overall because of those deals.

My guess is that as those leases come to an end and some of those people move, the rent situation may get less crazy. But who knows.

price is above pre pandemic

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