26 ms·

Rents are dropping across the US

247 points by xbmcuser 6y ago

baybal2 6y ago
> 'Pandemic pricing' is here. Rents are dropping across the US I don't understand the negativity, are most people here are rejoicing that they get cheaper rents in major cities?
- jdhn 6y ago
  CNN is acting as a mouthpiece here for landlords. Landlords don't want rents to go down, so they are reacting negatively to this news.
arthurjj 6y ago
I don't think TFA is supported by the Zumper data Looking at the linked Zumper[1] data it doesn't seem that dramatic outside of SF's 9.2% drop. NYC 1 bedroom is down 2% Boston 1% and SJ 0.4%. Interestingly Oakland is UP 4.9%. So the story is different than the one they seem to want to tell. [1] https://www.zumper.com/blog/rental-price-data/ https://www.zumper.com/blog/rental-price-data/
Grimm1 6y ago
Not only are they dropping, the incentives being offered around NYC are pretty nice. 50% off security deposit and 1 month free are what I've recently received. I checked back to see a week or two after and they were offering 2 months for free with 50% off the deposit.
- TechBro8615 6y ago
  Are they still doing salary requirements of 42x monthly rent unless you have a guarantor?
  - Grimm1 6y ago
    Yeah I don't think they've budged on that in NYC much yet unfortunately.
    - TechBro8615 6y ago
      It's quite frustrating how hard it is to get an apartment in NYC without a proper job, e.g. as a freelancer. If they even answer you, they want you to put a ton of money down up front.
  - maximente 6y ago
    i think it's typically 40x, but yeah, although IME it's not super religiously followed. a lot of landlords are fairly reasonable when it comes to working things out if you're close, especially now as vacancies are way up.
- victor106 6y ago
  One of my buddies just renewed his lease in one of Manhattan's top rental properties, and they gave him 3 months free on a 15 mont lease along with 50% security deposit off.
- nemo44x 6y ago
  It's a very interesting time in the real estate market. NYC has seen a lot of development over a fairly long amount of time, a lot of it higher end. The city has seen growth for 30 years in terms of population growth, tax base growth, etc. Can something continue to go up forever? My anecdotal experience lately has been there is a general mood among people (especially people who make a good living) that it's time to get out; that it has been for awhile due to unrealistic prices and now the civil unrest and potential for a longer term increase in crime as police forces are gutted, similar to the 70's and 80's - "the good ol' bad days". It's hard to tell if it's pure emotion and frustration right now or the beginnings of a larger trend, like in the mid-60's when many well-to-do people started to abandon cities. A couple real estate agents I know outside the city have said this has been the busiest they've ever been with clients moving out of the city. However, because they were more or less shut down for 2 months it could be just a backlog. Difficult to assess right now. In my personal opinion, the prices for NYC got to absurd levels. It's not why I moved out (wanted space and less density and wasn't using the parts of the city that make living in it worth it) but it certainly wasn't an argument to stay. A correction is needed. I'm sure policing will change dramatically but I don't believe that means more crime has to happen. Reallocating funds for other ways of deterring and avoiding crime are possible. However, NYC's political history makes me skeptic. My biggest fear for that city is that over the next few years, a lot of their tax base (the people that actually pay taxes) will leave. And because they'll work from home they won't have to pay taxes to NY like a lot of people in Connecticut and New Jersey have. It's not just the rents in NYC that are insane, the taxes are too. The value was you were paying to live in the most culturally relevant city on Earth that had decent services and was extremely safe.
  - Grimm1 6y ago
    I think you're spot on with many people believing it's time to get out. I'm on the younger end of the age cohort that where people typically think to begin their move out to the suburbs, if they plan to move at all, and from what I've seen given the pandemic it has accelerated that decision for some simply because of the indeterminate length of time we won't have access to that cultural relevance and social experience that only a city like NY can provide. I personally joke that the city and I have come to an agreement just to be friends as it works better that way. I've never had that in love feeling with NYC and it has been really good for my career and interests but without those benefits, I don't really want to stay and I'm finding that many people who like me aren't in love with the city but found it beneficial are moving up their timelines to get out. Combine that with the price increases, unless you're in tech or finance you can't really afford to live in the city any way you're generally relegated to the styx so what's the difference between a 40minute commute from the edge of Queens or a 40minute commute in from Connecticut when you can save more.
- komali2 6y ago
  What's this "broker fee" they're talking about? It sounds insanely high and I've never heard about it.
- amiga_500 6y ago
  They give a month "free" to avoid dropping the official rent. Make them drop it.
- NikolaeVarius 6y ago
  I actually got a rent drop, I never expected that to happen in NYC.
ghaff 6y ago
"across the US" as in "in expensive coastal cities." I don't know the broader trend but, anecdotally, I know people who have/are in the process of moving out of cities for more rural locations. One couple I know just moved out of a major Northeast city to the coast of Maine. Others are seriously considering vacating NYC etc. With many tech industry jobs mostly WFH until the end of the year and the future in general uncertain, a lot of people, especially those with leases coming up for renewal, are thinking this is a good time to make a move. ADDED: I suppose this is good news for people looking for cheaper city housing prices. Maybe not so good for those who were especially attached to either the vibrant city life or busy office life.
- bobthepanda 6y ago
  > Maybe not so good for those who were especially attached to either the vibrant city life or busy office life. Meh, if there's less people living in cities that's cheaper rent for me. What's interesting is what impact this could have on the carbon footprint. Generally speaking, higher density living is associated with lower carbon footprint per capita.
  - Spooky23 6y ago
    Maybe in the urban core. I have friends who live in "Boston" who are in a rough triangle between Danvers, Providence and Worchester. DC is even more insane.
  - _bxg1 6y ago
    Probably because of shortened commutes. But if many commutes disappear altogether, that could offset it.
    - risubramanian 6y ago
      In many parts of the country, heating plays a large role as well. Heating 100 units in an apartment building is going to be more efficient than heating 100 single family houses.
    - 6y ago
Avalaxy 6y ago
> "It has been crazy," Freund said, "but we definitely got a very good deal." This reads like a parody to me. Paying 5000 dollars per month in rent and calling it a good deal. That's more than what many people even make in salary.
- kerkeslager 6y ago
  Exactly. If you're making enough to pay for a $5000/month apartment, you're renting by choice, and I don't care if your rent dropped. Get back to me when people who pay rent because they don't have the option of buying get some benefit, and I'll care.
  - hcknwscommenter 6y ago
    "If you're making enough to pay for a $5000/month apartment, you're renting by choice" I don't think that's right. E.g., SF house and rent prices, assuming non-WFH policies require paying 5000/mo if your household is larger than 2 people. It's not a choice unless you happen to be blessed by rent control or rich enough to afford the 400K in cash for the down payment.
    - kerkeslager 6y ago
      People who have enough money to pay $5000/mo in rent have options for other places to live. I have significantly less income, and I have options of places to live.
      - hcknwscommenter 6y ago
        yes, but those options almost invariably result in having a significantly less income. Believe me, I am working hard to make the location/salary arbitrage work, but employers are not stupid. The only way to "guarantee" it is to work for yourself, but if you leave the high-cost-of-living area, your network gets drastically smaller and you risk losing work.
- bobthepanda 6y ago
leg100 6y ago
That doesn't sound like much of a discount, what, 5%? Without moving, I got 40% off my rent for six months in the middle of London. I'd encourage tenants who haven't asked for a discount yet to do so.
- chrisseaton 6y ago
  What do you say? 'Give me a discount or...' or what? You'll move out? Sounds like moving would out be an absolute nightmare at the moment. Are you going to go flat-hunting in the middle of a pandemic?
  - chickenpotpie 6y ago
    I'm looking for a new apartment right now. It's not a big deal at all. The only difference is that I tour the apartments without the office staff.
  - baby 6y ago
    I've thought about reaching out to my landlords and ask if they would "consider aligning with the current market". I haven't done it because they've been good landlord, but at the same time I'm paying an insane rent (I live in SF) for a pretty average 1 bedroom... But what if rent continues to decrease, can't ask twice.
    - deleted 6y ago
      [deleted]
yurlungur 6y ago
"Conveniently" just got a notice from my property to renew my lease with a slight increase in rent. July 4th seems like a pretty good time to look for alternatives!
vorpalhex 6y ago
This seems more like a market correction than an actual rent drop. > She and her roommate signed a lease on a two-bedroom apartment in the West Village for $4,995 a month. I struggle to believe that there are two bedroom apartments that have that kind of demand/value outside of an inflated circumstance.
- amznthrwaway 6y ago
  That is nearly exactly what I pay to rent a 2-bedroom in Seattle. It was absolutely worth it until I didn't have to go to the office every day.
- hn_throwaway_99 6y ago
  > This seems more like a market correction than an actual rent drop. An "actual rent drop" is a market correction.
benmw333 6y ago
LOL say's California! I have seen steady rent prices and decreasing housing prices.
- diogenescynic 6y ago
  Even within California it's mostly just a shift from urban areas to suburban and rural. For instance, leaving San Francisco and moving to Sacramento or Tahoe or Santa Cruz.
- baby 6y ago
  Not in SF, rents are taking a huge dip while housing prices are not moving (or even going higher :/)
dave_4_bagels 6y ago
This is interesting, immediately before Covid-19 hit NYC I moved to mid-town Manhattan in early March. Compared to Boston (where I'd previously lived for about 7 years) I was stunned how affordable (with roommates) luxury housing was, at least during "off-season". For the master suite in a unit with a clear view of the Hudson and the USS Intrepid (I actually had a great view of the USS Comfort while it was in port) I only pay $1900/mo. with free gym perks, laundry in unit, AC, with brand new construction standards (building was constructed in 2018). It's not cheap, but by NYC standards when correcting for the quality of the building / building's I've lived in around Boston it's unparalleled. Even if I moved to Austin TX, I'd essentially only be saving about $400/mo. to have a decent apt to myself but also be getting paid substantially less. It's going to be very interesting in a year whether I negotiate my rent down, or look for a new place to live and bargain HARD. That said, I'm an NYC rental noob, very open to what kind of luxury rents people are seeing now in a post-covid rental environment?
- lbotos 6y ago
  I vouched for you to get this comment out of dead. I think you may be shadowbanned for your first comment on your account? Talk to the mods.
  - user5994461 6y ago
    Might have got downvoted for the nonsense of "luxury with roommates". There is no luxury in having to share living space with 3 strangers. This resonates very strong with members over 30 and couples, it's the sign that having a roof for yourself let alone your family is totally unaffordable.
  - deleted 6y ago
    [deleted]
- redis_mlc 6y ago
  > affordable (with roommates) That's fine if that's the choice you wanted to make. But if you wanted to live alone, or with your own family, it's not affordable to pay a multiple of that without a choice.
chadlavi 6y ago
I for one am ready and rarin' to go for a housing market crash (or "correction" if you wanna call it that) here in NYC, and strongly encourage everyone who doesn't feel like living here to strike out for the heartland. It'll be a better city all around with fewer people and lower rents.
- nemo44x 6y ago
  > It'll be a better city all around with fewer people and lower rents. Possibly. It depends who leaves. If it's mainly people that are decently high earners and provide a lot of the tax base, it will be dark days for the city for awhile. Budgets will be cut as a combination of the tourism collapse and loss of income taxes will compound to create a crisis for the city. These things domino quickly as shops close, real estate taxes aren't collected, etc. I think a lot of young people don't really understand how miserable the city was in many ways for about 25 years there before it had a renaissance the last 25 years. I agree that a correction is needed. The rent is too damn high, to be sure.
  - ghaff 6y ago
    While I'm sure there are exceptions, I imagine a lot of the people who talk about gentrification or who toss out off-hand comments about the Disney-fication of Times Square never actually saw 42nd Street late at night in the 80s or have conveniently blocked it from their memories.
    - eternalban 6y ago
      I remember it. In fact, I even helped build models for the 42nd street renovations as a side gig in school. Time Square was as filthy and sleazy as one would expect from exposed underbelly of the beast. It is definitely cleaner now, but there is a different repelling aspect to it. But the fact remains that outside of 42nd Street New York City had a genuine character and energy that off the charts and far removed from an open air market mass tourism destintation. I sorely miss sitting in front of Fanneli's in Prince street and nursing a pint and chatting up _neighbors_; or catching the local music scene in Bowery or East Village; or walking gingerly past the 'made guys' on Mott Street while avoiding looking Gotti in the eye; or going to that run-down theatre on St. Marks or that other one near Kennedy Center. One could walk for hours those days without a single side-walk rage incident; and of course our brunch hangouts were accessible if we showed up reasonably early. (Brooklyn is kinda the Manhattan pre Guilliani Light and that is where I have self exiled.) I mean, for God's sake, we used to have a Kid Robbot right on Prince street. Now that store is selling nail polish and makeup. Yes it is cleaner now, but damn I miss that New York.
Pxtl 6y ago
Seems silly to discuss the falling rental prices in prestigious cities without even a nod to AirBNB. AirBNB rentals have collapsed, and so a lot of owners have moved their properties into conventional long-term rental. This has created a glut in the rental market, and is driving prices down. https://www.straight.com/news/some-vancouver-airbnb-units-are-being-converted-into-long-term-rental-dwellings https://www.straight.com/news/some-vancouver-airbnb-units-ar...
- sharkmerry 6y ago
  Whats intriguing is the person doing the "calling out" in the article/on twitter is pointing out that these are supposed to be owner-occupied if listed on AirBnb.
  - soperj 6y ago
    they are supposed to be in Vancouver.
- Finnucane 6y ago
  Also, I have to wonder if empty apartments held by investors as ‘safe deposit boxes’ will start to appear on the rental or sale markets if the value drops. And this will have an effect on new construction: if demand weakens, construction will drop off.
  - slg 6y ago
    >Also, I have to wonder if empty apartments held by investors as ‘safe deposit boxes’ will start to appear on the rental or sale markets if the value drops. Cities are also making moves that might increase the chances of this. Los Angeles just took steps yesterday to put a vacancy tax on the November 2020 ballot.
    - nemo44x 6y ago
      Interesting. I've read, however, that something like that is probably very easily unconstitutional and/or easy to get around. The bigger issue is that the tax code gives landlords incentive to not rent at "market value" and hold out for more money on a long term contract.
xxpor 6y ago
If we needed any more evidence the way to lower costs in the long term is building more housing. Supply and demand works people!
- maxsilver 6y ago
  Except this proves the opposite. When we built, prices skyrocketed. When we stopped building (due to COVID), the prices began dropping. It's a combination of AirBNB being unable to illegally occupy housing, and the ultra-wealthy having a fear of urban density contagion. Demand is basically unchanged over the last 6 months, and the housing that exists is basically unchanged over the last 6 months, and yet prices are finally falling. It's got basically nothing to do with "supply and demand" for cities (unless your definition of "demand" is so loose as to include literally anything that might impact a pricetag).
  - TulliusCicero 6y ago
    Your reasoning is the tail wagging the dog. Money flooding into an area is obviously going to cause rents to increase as well as incentivize developers to build more to capture some of that moolah as there's more demand for housing. Money flooding out of the area is going to cause both rents to immediately decrease, as well as decrease the incentive to build more housing, because the demand is gone.
  - hn_throwaway_99 6y ago
    > Demand is basically unchanged over the last 6 months I'm calling major BS unless you can back that up with a source. This article talks about the major exodus in NYC: https://therealdeal.com/2020/06/02/new-yorkers-exodus-could-unravel-rent-regulation/ https://therealdeal.com/2020/06/02/new-yorkers-exodus-could-...
  - renewiltord 6y ago
    Construction is still continuing and I don't think it ever stopped. I used to drive by 1550 mission and they were going at it hammer and tongs all through the entire period. So your premise is wrong: we didn't stop building. Most construction is covered as essential work.
credit_guy 6y ago
That hasn't been my experience. My lease expires mid August, and I already got the lease renewal. The same level as the current one, not a dollar less. We started looking around. Everywhere the same, same level as the current one. I didn't get to ask about free months yet, maybe management companies will offer one-two months. But the actual rent per month is not going down, despite a significant number of vacancies.
- cududa 6y ago
  I asked my landlord flat out and he offered a permanent reduction of 7.5% or 15% and we could renegotiate in 6 months. You should at least try asking, it’s not like they’re just going to give that out to everyone
- amiga_500 6y ago
  That's why we have the word anecdote.
- mywittyname 6y ago
  Recessions take a while to sink in. Your landlords are predicting a swift pickup after this "minor dip" and are acting accordingly. My experience with large property management firms is that they aren't keen on handing out discounts to existing leasees.
- RandomBacon 6y ago
  Negotiate. Tell the manager they've been great, but ultimately it comes down to dollar price for you. Let them know you're starting to look elsewhere unless they can lower the rate. When they reply, even if you like the rate, don't tell them that. Tell them it's not what you are looking for; that because of work and expenses, that rate isn't as affordable. Give them another chance to offer another lower rate or add a perk such as a free month or two.
- dragandj 6y ago
  Ask and ye shall be given.
ChuckMcM 6y ago
One wonders if this is, perhaps, explained by a lot of people holding on to rental properties as airbnb units had to give them up, so there are lots of units available and prices are coming down.
taylorhou 6y ago
If I were a renter right now and in an urban area with a lease renewal coming due, I'd 1000% call the mgmt co's bluff. Context: my firm provides back office services to 50k+ rental units across the nation and unless you're in some oddly hot market, most mgmt companies currently are holding their breath that their renters don't say anything and renew at the same price. If you're reasonable, you can easily negotiate a price drop and the mgmt co will most likely accept it begrudgingly because they do not have the data to call YOUR bluff. every mgmt co right now is taking whatever they can get and locking it down for as long as they can. happy to respond to individual folks questions but keep in mind that any advice I may provide is not legal nor financial and I guess I should say my posts/comments are my own and do not represent my company's. =)
- paulgb 6y ago
  Thanks for the insight. Any perspective on NYC specifically?
  - tartoran 6y ago
    Lots of people are moving Upstate from NYC and relatively few new people are moving in: schools are closed. During this time of the year lots of youngsters would normally move in but that is not the case. Rents should drop for sure. Realtors are also bluffing the price up because of a higher omission they get. Anecdote: I know a realtor who jacked up the price of an apartment in Queens by $250 because it was supposedly under the market price and the landlord priced it wrong. That realtor found the people to move in, but I think what they did was utterly wrong, greedy, etc So insist, look around and don’t settle for less (in this case for more than you're willing to pay for, and subtract some from that). If there was a good time to bargain now is the time. Be picky! I've seen such oddities in this dirty city, apartments a few feet from the train station - imagine the unbearable noise - which rent for nearly the market price minus 1-200. I've seen apartments with caved in floors rent for almost the market price.
  - sickcodebruh 6y ago
    I have no insight into other buildings but management where I live, a pricey 400+ unit in LIC, haven’t budged on anyone’s rent as leases end. Everyone we socialize with (we have a small daughter and there used to be a big crew of babies) has either left or is leaving in the next few months, the garage is less than half full — it’s a ghost town. They’re still raising rents and refused to negotiate with anyone we know. The building is rent stabilized so maybe they fear that lowering the rent will make it impossible for them to hit certain numbers over the next few years?
renewiltord 6y ago
It's really not a big change. The rent on the market is the visible marginal rate and skews upwards because of locations that are way above their market rate being not taken for a long time.
jjice 6y ago
> She and her roommate signed a lease on a two-bedroom apartment in the West Village for $4,995 a month Holy cow, I knew NY rent way expensive, but wow I didn't know it was that bad. Growing up in upstate NY, you could be a nice family ready home in my suburban home town for ~100K. Of course there were houses that went up to ~150K or even 200K, but 100K was standard for purchasing a home. I even though that that was a lot. I'm working in RI right now, renting a room outside the city, and I pay ~$500 a month for a room and all utilities. Have I just lived in very cheap places and the rest of this country is very expensive, or is it really just the big cities that have extremely expensive housing?
- golf1052 6y ago
  It's not just "big" cities, it's all cities at least according to this source [1]. I grew up in RI but I moved to Seattle after graduating college because I didn't want to live in RI anymore but job prospects for tech increase when you're in a city. I wonder what the cycle to expensive rents is? Wages from jobs start to increase in an area, some housing development happens, rents go up on those new developments to cover costs but also because their renters can afford it, repeat? 1: https://www.zumper.com/blog/rental-price-data/ https://www.zumper.com/blog/rental-price-data/
  - TulliusCicero 6y ago
    > Wages from jobs start to increase in an area, some housing development happens, rents go up on those new developments to cover costs but also because their renters can afford it, repeat? The increased wages (more jobs + better jobs) leads directly to both new housing development AND increased demand for whatever housing currently exists. The latter is more impactful for higher prices than the former. > but also because their renters can afford it, repeat? This isn't quite how things work. Most landlords are always going to raise the rent to whatever the market can bear. Of course, how much people can afford does factor into that, but it's not everything. I can afford to buy milk that costs 10x as it does right now, but I wouldn't actually pay that because I have no reason to when cheap milk still exists. Landlords are able to raise rents when the demand for housing goes up faster than the supply, such that renters don't have better options available.
subsubzero 6y ago
A lot of engineers in my group as well as a few friends are leaving the SF bay area. Now that working there is no longer a requirement and everything is shut down, why live there? Oregon, Nevada, Colo, (cheaper areas of CA), all are places that they are heading to. Main reasons are cost, crowds(lack thereof) and overall better quality of life. Expect this trend to accelerate once more leases end.
- bradlys 6y ago
  And in my circle - none are leaving. We all recognize that leaving the area means leaving job opportunities behind too. We've seen what happens to engineers career trajectory who are remote at an in-person company.
  - 01100011 6y ago
    So we can expect the population of the valley to shift towards even more career minded over achievers while normal folks flee. Great.
    - pm90 6y ago
      That’s a disingenuous characterization. SF job market and the Bay Area Technology “Scene” is what attracts a lot of “normal” people. One doesn’t have to be a career minded over achiever to want access to this job market.
    - bradlys 6y ago
      I mean - did we ever expect the trend to reverse? This region is built on the idea of professional opportunities (FAANG, bleeding edge tech, etc.) and the possibility of getting rich if you join the right startup (aka - buy the right lottery tickets/exercise-options). I've only seen it get worse as I've spent my time here. Has it ever been worse in terms of wealth disparity? I think it will continue to get worse short of radical change. (Prop 13 dying, rezoning w/ hundreds of thousands of apartments built, radical public transit, etc.)
      - 6y ago
asdfman123 6y ago
One dark thing the article doesn't seem to mention: what about COVID-19 evictions? Have to get new tenants when the old ones are being kicked out or going back home to live with their parents.
- hackernews 6y ago
  You're correct, it's dark thing and that no one is talking about it. How do courts open back up when 30%+ rentals are overdue on rent?
paulpauper 6y ago
>At the end of May, Ilana Freund landed a deal on an apartment in New York City where she will be attending graduate school. She and her roommate signed a lease on a two-bedroom apartment in the West Village for $4,995 a month. It was a significant discount: Similar apartments in the building were going for around $5,300 before the pandemic took hold, according to the listing agent. wow a whole 6% reduction. Odds are next year it will be back at $5,300. One way to offset this reduction is to increase the mandatory down-payment or increase min. duration of the lease.
- xenihn 6y ago
  it's primarily a big deal because this is the end of YOY increases that lasted for more than five years
holidayacct 6y ago
On a related topic, for those of you who maybe unemployed or know someone who is unemployed. Beware of rumor spreading when you are looking for work there are companies that are setup for a single purpose. They keep track of the recently unemployed and specialize in spreading rumors at every and any company that you interview at (They masquerade as in-person advertisers or MLM companies). They do this to keep you unemployed long enough so that they can force you into certain places at ridiculously low salaries, they then keep you in debt slavery to force you to purchase from certain places that landlords or shop owners benefit from. This happens all over the country and these vultures are taking advantage of people all over the place.
- yodon 6y ago
  Citation?
WalterBright 6y ago
Supply & demand actually works, even for real estate.
gliese1337 6y ago
Rents, and house prices, are going up where I live, reportedly as a result of all of the people leaving California cities and moving here instead.
austincheney 6y ago
Nearly $8000 for luxury one bedroom apartment. Money to burn. My house payment is about $1200 per month for 2800 sqft in one of the nations largest cities and that includes property tax. Plus I have equity on the house which has doubled in value over the last 10 years. Financially I really do not understand dumping cash into a lease without equity.
deleted 6y ago
[deleted]
forgotmypw17 6y ago
https://xx.reddit.com/r/AskNYC/comments/h9nzrg/my_landlord_is_dropping_my_rent_200_when_i_reup/ https://xx.reddit.com/r/AskNYC/comments/h9nzrg/my_landlord_i...
ethagknight 6y ago
Incidentally, I just opened a large urban apartment community in downtown Memphis, and we are leasing up at 2x the rate we planned on, for higher rents than we planned on.
bogomipz 6y ago
There's a couple of things worth at least considering. The article states: >"The two roommates were also given one month's rent free and did not have to pay a broker fee, which typically would have cost them 12% to 15% of the annual rent." There was actually legislation passed back in the Winter that effectively did away with the whole broker fee system.[1] I know a judge temporarily blocked this as per the article but that was only until June. >'"But, he said, more apartments are also available because people just up and left their leases. While many left when the pandemic shut down the city, others left later when the protests over the killing of George Floyd began, Gavzie said.' Generally you are legally obligated for the rent for the duration of your lease. So while a renter can "just up and leave", if they don't fulfill their obligations they can be sued. So if by upping and leaving a tenants pay's the remainder of their financial obligation then it would make sense that a landlord would give them a discount since they may be collecting twice on the same place for some period time. [1] https://ny.curbed.com/2020/2/11/21132836/nyc-broker-fees-law-real-estate-tenants-rights https://ny.curbed.com/2020/2/11/21132836/nyc-broker-fees-law...
exabrial 6y ago
I have a feeling commercial real estate is next in about 3-6 months
TheBobinator 6y ago
This articles takes 4 pieces of anecdotal evidence and concludes rents are dropping; there is no study, no calling around, no use of modern technology. Just 4 anecdotal pieces of evidence. Then everyone on HN is going to start talking about their anecdotal evidence which does exactly nothing for anyone. This is exactly the kind of drivvel and BS that does not belong on HN or frankly, published in 2020.

247 points by xbmcuser 6y ago

> 'Pandemic pricing' is here. Rents are dropping across the US I don't understand the negativity, are most people here are rejoicing that they get cheaper rents in major cities?

jdhn 6y ago
CNN is acting as a mouthpiece here for landlords. Landlords don't want rents to go down, so they are reacting negatively to this news.

arthurjj 6y ago

I don't think TFA is supported by the Zumper data Looking at the linked Zumper[1] data it doesn't seem that dramatic outside of SF's 9.2% drop. NYC 1 bedroom is down 2% Boston 1% and SJ 0.4%. Interestingly Oakland is UP 4.9%. So the story is different than the one they seem to want to tell. [1] https://www.zumper.com/blog/rental-price-data/ https://www.zumper.com/blog/rental-price-data/

Grimm1 6y ago

Not only are they dropping, the incentives being offered around NYC are pretty nice. 50% off security deposit and 1 month free are what I've recently received. I checked back to see a week or two after and they were offering 2 months for free with 50% off the deposit.

TechBro8615 6y ago
Are they still doing salary requirements of 42x monthly rent unless you have a guarantor?
- Grimm1 6y ago
  Yeah I don't think they've budged on that in NYC much yet unfortunately.
  - TechBro8615 6y ago
    It's quite frustrating how hard it is to get an apartment in NYC without a proper job, e.g. as a freelancer. If they even answer you, they want you to put a ton of money down up front.
- maximente 6y ago
  i think it's typically 40x, but yeah, although IME it's not super religiously followed. a lot of landlords are fairly reasonable when it comes to working things out if you're close, especially now as vacancies are way up.
victor106 6y ago
One of my buddies just renewed his lease in one of Manhattan's top rental properties, and they gave him 3 months free on a 15 mont lease along with 50% security deposit off.
nemo44x 6y ago
It's a very interesting time in the real estate market. NYC has seen a lot of development over a fairly long amount of time, a lot of it higher end. The city has seen growth for 30 years in terms of population growth, tax base growth, etc. Can something continue to go up forever? My anecdotal experience lately has been there is a general mood among people (especially people who make a good living) that it's time to get out; that it has been for awhile due to unrealistic prices and now the civil unrest and potential for a longer term increase in crime as police forces are gutted, similar to the 70's and 80's - "the good ol' bad days". It's hard to tell if it's pure emotion and frustration right now or the beginnings of a larger trend, like in the mid-60's when many well-to-do people started to abandon cities. A couple real estate agents I know outside the city have said this has been the busiest they've ever been with clients moving out of the city. However, because they were more or less shut down for 2 months it could be just a backlog. Difficult to assess right now. In my personal opinion, the prices for NYC got to absurd levels. It's not why I moved out (wanted space and less density and wasn't using the parts of the city that make living in it worth it) but it certainly wasn't an argument to stay. A correction is needed. I'm sure policing will change dramatically but I don't believe that means more crime has to happen. Reallocating funds for other ways of deterring and avoiding crime are possible. However, NYC's political history makes me skeptic. My biggest fear for that city is that over the next few years, a lot of their tax base (the people that actually pay taxes) will leave. And because they'll work from home they won't have to pay taxes to NY like a lot of people in Connecticut and New Jersey have. It's not just the rents in NYC that are insane, the taxes are too. The value was you were paying to live in the most culturally relevant city on Earth that had decent services and was extremely safe.
- Grimm1 6y ago
  I think you're spot on with many people believing it's time to get out. I'm on the younger end of the age cohort that where people typically think to begin their move out to the suburbs, if they plan to move at all, and from what I've seen given the pandemic it has accelerated that decision for some simply because of the indeterminate length of time we won't have access to that cultural relevance and social experience that only a city like NY can provide. I personally joke that the city and I have come to an agreement just to be friends as it works better that way. I've never had that in love feeling with NYC and it has been really good for my career and interests but without those benefits, I don't really want to stay and I'm finding that many people who like me aren't in love with the city but found it beneficial are moving up their timelines to get out. Combine that with the price increases, unless you're in tech or finance you can't really afford to live in the city any way you're generally relegated to the styx so what's the difference between a 40minute commute from the edge of Queens or a 40minute commute in from Connecticut when you can save more.
komali2 6y ago
What's this "broker fee" they're talking about? It sounds insanely high and I've never heard about it.
amiga_500 6y ago
They give a month "free" to avoid dropping the official rent. Make them drop it.
NikolaeVarius 6y ago
I actually got a rent drop, I never expected that to happen in NYC.

ghaff 6y ago

"across the US" as in "in expensive coastal cities." I don't know the broader trend but, anecdotally, I know people who have/are in the process of moving out of cities for more rural locations. One couple I know just moved out of a major Northeast city to the coast of Maine. Others are seriously considering vacating NYC etc. With many tech industry jobs mostly WFH until the end of the year and the future in general uncertain, a lot of people, especially those with leases coming up for renewal, are thinking this is a good time to make a move. ADDED: I suppose this is good news for people looking for cheaper city housing prices. Maybe not so good for those who were especially attached to either the vibrant city life or busy office life.

bobthepanda 6y ago
> Maybe not so good for those who were especially attached to either the vibrant city life or busy office life. Meh, if there's less people living in cities that's cheaper rent for me. What's interesting is what impact this could have on the carbon footprint. Generally speaking, higher density living is associated with lower carbon footprint per capita.
- Spooky23 6y ago
  Maybe in the urban core. I have friends who live in "Boston" who are in a rough triangle between Danvers, Providence and Worchester. DC is even more insane.
- _bxg1 6y ago
  Probably because of shortened commutes. But if many commutes disappear altogether, that could offset it.
  - risubramanian 6y ago
    In many parts of the country, heating plays a large role as well. Heating 100 units in an apartment building is going to be more efficient than heating 100 single family houses.
  - 6y ago

Avalaxy 6y ago

> "It has been crazy," Freund said, "but we definitely got a very good deal." This reads like a parody to me. Paying 5000 dollars per month in rent and calling it a good deal. That's more than what many people even make in salary.

kerkeslager 6y ago
Exactly. If you're making enough to pay for a $5000/month apartment, you're renting by choice, and I don't care if your rent dropped. Get back to me when people who pay rent because they don't have the option of buying get some benefit, and I'll care.
- hcknwscommenter 6y ago
  "If you're making enough to pay for a $5000/month apartment, you're renting by choice" I don't think that's right. E.g., SF house and rent prices, assuming non-WFH policies require paying 5000/mo if your household is larger than 2 people. It's not a choice unless you happen to be blessed by rent control or rich enough to afford the 400K in cash for the down payment.
  - kerkeslager 6y ago
    People who have enough money to pay $5000/mo in rent have options for other places to live. I have significantly less income, and I have options of places to live.
    - hcknwscommenter 6y ago
      yes, but those options almost invariably result in having a significantly less income. Believe me, I am working hard to make the location/salary arbitrage work, but employers are not stupid. The only way to "guarantee" it is to work for yourself, but if you leave the high-cost-of-living area, your network gets drastically smaller and you risk losing work.
bobthepanda 6y ago

leg100 6y ago

That doesn't sound like much of a discount, what, 5%? Without moving, I got 40% off my rent for six months in the middle of London. I'd encourage tenants who haven't asked for a discount yet to do so.

chrisseaton 6y ago
What do you say? 'Give me a discount or...' or what? You'll move out? Sounds like moving would out be an absolute nightmare at the moment. Are you going to go flat-hunting in the middle of a pandemic?
- chickenpotpie 6y ago
  I'm looking for a new apartment right now. It's not a big deal at all. The only difference is that I tour the apartments without the office staff.
- baby 6y ago
  I've thought about reaching out to my landlords and ask if they would "consider aligning with the current market". I haven't done it because they've been good landlord, but at the same time I'm paying an insane rent (I live in SF) for a pretty average 1 bedroom... But what if rent continues to decrease, can't ask twice.
  - deleted 6y ago
    [deleted]

yurlungur 6y ago

"Conveniently" just got a notice from my property to renew my lease with a slight increase in rent. July 4th seems like a pretty good time to look for alternatives!

vorpalhex 6y ago

This seems more like a market correction than an actual rent drop. > She and her roommate signed a lease on a two-bedroom apartment in the West Village for $4,995 a month. I struggle to believe that there are two bedroom apartments that have that kind of demand/value outside of an inflated circumstance.

amznthrwaway 6y ago
That is nearly exactly what I pay to rent a 2-bedroom in Seattle. It was absolutely worth it until I didn't have to go to the office every day.
hn_throwaway_99 6y ago
> This seems more like a market correction than an actual rent drop. An "actual rent drop" is a market correction.

benmw333 6y ago

LOL say's California! I have seen steady rent prices and decreasing housing prices.

diogenescynic 6y ago
Even within California it's mostly just a shift from urban areas to suburban and rural. For instance, leaving San Francisco and moving to Sacramento or Tahoe or Santa Cruz.
baby 6y ago
Not in SF, rents are taking a huge dip while housing prices are not moving (or even going higher :/)

dave_4_bagels 6y ago

This is interesting, immediately before Covid-19 hit NYC I moved to mid-town Manhattan in early March. Compared to Boston (where I'd previously lived for about 7 years) I was stunned how affordable (with roommates) luxury housing was, at least during "off-season". For the master suite in a unit with a clear view of the Hudson and the USS Intrepid (I actually had a great view of the USS Comfort while it was in port) I only pay $1900/mo. with free gym perks, laundry in unit, AC, with brand new construction standards (building was constructed in 2018). It's not cheap, but by NYC standards when correcting for the quality of the building / building's I've lived in around Boston it's unparalleled. Even if I moved to Austin TX, I'd essentially only be saving about $400/mo. to have a decent apt to myself but also be getting paid substantially less. It's going to be very interesting in a year whether I negotiate my rent down, or look for a new place to live and bargain HARD. That said, I'm an NYC rental noob, very open to what kind of luxury rents people are seeing now in a post-covid rental environment?

lbotos 6y ago
I vouched for you to get this comment out of dead. I think you may be shadowbanned for your first comment on your account? Talk to the mods.
- user5994461 6y ago
  Might have got downvoted for the nonsense of "luxury with roommates". There is no luxury in having to share living space with 3 strangers. This resonates very strong with members over 30 and couples, it's the sign that having a roof for yourself let alone your family is totally unaffordable.
- deleted 6y ago
  [deleted]
redis_mlc 6y ago
> affordable (with roommates) That's fine if that's the choice you wanted to make. But if you wanted to live alone, or with your own family, it's not affordable to pay a multiple of that without a choice.

chadlavi 6y ago

I for one am ready and rarin' to go for a housing market crash (or "correction" if you wanna call it that) here in NYC, and strongly encourage everyone who doesn't feel like living here to strike out for the heartland. It'll be a better city all around with fewer people and lower rents.

nemo44x 6y ago
> It'll be a better city all around with fewer people and lower rents. Possibly. It depends who leaves. If it's mainly people that are decently high earners and provide a lot of the tax base, it will be dark days for the city for awhile. Budgets will be cut as a combination of the tourism collapse and loss of income taxes will compound to create a crisis for the city. These things domino quickly as shops close, real estate taxes aren't collected, etc. I think a lot of young people don't really understand how miserable the city was in many ways for about 25 years there before it had a renaissance the last 25 years. I agree that a correction is needed. The rent is too damn high, to be sure.
- ghaff 6y ago
  While I'm sure there are exceptions, I imagine a lot of the people who talk about gentrification or who toss out off-hand comments about the Disney-fication of Times Square never actually saw 42nd Street late at night in the 80s or have conveniently blocked it from their memories.
  - eternalban 6y ago
    I remember it. In fact, I even helped build models for the 42nd street renovations as a side gig in school. Time Square was as filthy and sleazy as one would expect from exposed underbelly of the beast. It is definitely cleaner now, but there is a different repelling aspect to it. But the fact remains that outside of 42nd Street New York City had a genuine character and energy that off the charts and far removed from an open air market mass tourism destintation. I sorely miss sitting in front of Fanneli's in Prince street and nursing a pint and chatting up _neighbors_; or catching the local music scene in Bowery or East Village; or walking gingerly past the 'made guys' on Mott Street while avoiding looking Gotti in the eye; or going to that run-down theatre on St. Marks or that other one near Kennedy Center. One could walk for hours those days without a single side-walk rage incident; and of course our brunch hangouts were accessible if we showed up reasonably early. (Brooklyn is kinda the Manhattan pre Guilliani Light and that is where I have self exiled.) I mean, for God's sake, we used to have a Kid Robbot right on Prince street. Now that store is selling nail polish and makeup. Yes it is cleaner now, but damn I miss that New York.

Pxtl 6y ago

Seems silly to discuss the falling rental prices in prestigious cities without even a nod to AirBNB. AirBNB rentals have collapsed, and so a lot of owners have moved their properties into conventional long-term rental. This has created a glut in the rental market, and is driving prices down. https://www.straight.com/news/some-vancouver-airbnb-units-are-being-converted-into-long-term-rental-dwellings https://www.straight.com/news/some-vancouver-airbnb-units-ar...

sharkmerry 6y ago
Whats intriguing is the person doing the "calling out" in the article/on twitter is pointing out that these are supposed to be owner-occupied if listed on AirBnb.
- soperj 6y ago
  they are supposed to be in Vancouver.
Finnucane 6y ago
Also, I have to wonder if empty apartments held by investors as ‘safe deposit boxes’ will start to appear on the rental or sale markets if the value drops. And this will have an effect on new construction: if demand weakens, construction will drop off.
- slg 6y ago
  >Also, I have to wonder if empty apartments held by investors as ‘safe deposit boxes’ will start to appear on the rental or sale markets if the value drops. Cities are also making moves that might increase the chances of this. Los Angeles just took steps yesterday to put a vacancy tax on the November 2020 ballot.
  - nemo44x 6y ago
    Interesting. I've read, however, that something like that is probably very easily unconstitutional and/or easy to get around. The bigger issue is that the tax code gives landlords incentive to not rent at "market value" and hold out for more money on a long term contract.

xxpor 6y ago

If we needed any more evidence the way to lower costs in the long term is building more housing. Supply and demand works people!

maxsilver 6y ago
Except this proves the opposite. When we built, prices skyrocketed. When we stopped building (due to COVID), the prices began dropping. It's a combination of AirBNB being unable to illegally occupy housing, and the ultra-wealthy having a fear of urban density contagion. Demand is basically unchanged over the last 6 months, and the housing that exists is basically unchanged over the last 6 months, and yet prices are finally falling. It's got basically nothing to do with "supply and demand" for cities (unless your definition of "demand" is so loose as to include literally anything that might impact a pricetag).
- TulliusCicero 6y ago
  Your reasoning is the tail wagging the dog. Money flooding into an area is obviously going to cause rents to increase as well as incentivize developers to build more to capture some of that moolah as there's more demand for housing. Money flooding out of the area is going to cause both rents to immediately decrease, as well as decrease the incentive to build more housing, because the demand is gone.
- hn_throwaway_99 6y ago
  > Demand is basically unchanged over the last 6 months I'm calling major BS unless you can back that up with a source. This article talks about the major exodus in NYC: https://therealdeal.com/2020/06/02/new-yorkers-exodus-could-unravel-rent-regulation/ https://therealdeal.com/2020/06/02/new-yorkers-exodus-could-...
- renewiltord 6y ago
  Construction is still continuing and I don't think it ever stopped. I used to drive by 1550 mission and they were going at it hammer and tongs all through the entire period. So your premise is wrong: we didn't stop building. Most construction is covered as essential work.

credit_guy 6y ago

That hasn't been my experience. My lease expires mid August, and I already got the lease renewal. The same level as the current one, not a dollar less. We started looking around. Everywhere the same, same level as the current one. I didn't get to ask about free months yet, maybe management companies will offer one-two months. But the actual rent per month is not going down, despite a significant number of vacancies.

cududa 6y ago
I asked my landlord flat out and he offered a permanent reduction of 7.5% or 15% and we could renegotiate in 6 months. You should at least try asking, it’s not like they’re just going to give that out to everyone
amiga_500 6y ago
That's why we have the word anecdote.
mywittyname 6y ago
Recessions take a while to sink in. Your landlords are predicting a swift pickup after this "minor dip" and are acting accordingly. My experience with large property management firms is that they aren't keen on handing out discounts to existing leasees.
RandomBacon 6y ago
Negotiate. Tell the manager they've been great, but ultimately it comes down to dollar price for you. Let them know you're starting to look elsewhere unless they can lower the rate. When they reply, even if you like the rate, don't tell them that. Tell them it's not what you are looking for; that because of work and expenses, that rate isn't as affordable. Give them another chance to offer another lower rate or add a perk such as a free month or two.
dragandj 6y ago
Ask and ye shall be given.

ChuckMcM 6y ago

One wonders if this is, perhaps, explained by a lot of people holding on to rental properties as airbnb units had to give them up, so there are lots of units available and prices are coming down.

taylorhou 6y ago

If I were a renter right now and in an urban area with a lease renewal coming due, I'd 1000% call the mgmt co's bluff. Context: my firm provides back office services to 50k+ rental units across the nation and unless you're in some oddly hot market, most mgmt companies currently are holding their breath that their renters don't say anything and renew at the same price. If you're reasonable, you can easily negotiate a price drop and the mgmt co will most likely accept it begrudgingly because they do not have the data to call YOUR bluff. every mgmt co right now is taking whatever they can get and locking it down for as long as they can. happy to respond to individual folks questions but keep in mind that any advice I may provide is not legal nor financial and I guess I should say my posts/comments are my own and do not represent my company's. =)

paulgb 6y ago
Thanks for the insight. Any perspective on NYC specifically?
- tartoran 6y ago
  Lots of people are moving Upstate from NYC and relatively few new people are moving in: schools are closed. During this time of the year lots of youngsters would normally move in but that is not the case. Rents should drop for sure. Realtors are also bluffing the price up because of a higher omission they get. Anecdote: I know a realtor who jacked up the price of an apartment in Queens by $250 because it was supposedly under the market price and the landlord priced it wrong. That realtor found the people to move in, but I think what they did was utterly wrong, greedy, etc So insist, look around and don’t settle for less (in this case for more than you're willing to pay for, and subtract some from that). If there was a good time to bargain now is the time. Be picky! I've seen such oddities in this dirty city, apartments a few feet from the train station - imagine the unbearable noise - which rent for nearly the market price minus 1-200. I've seen apartments with caved in floors rent for almost the market price.
- sickcodebruh 6y ago
  I have no insight into other buildings but management where I live, a pricey 400+ unit in LIC, haven’t budged on anyone’s rent as leases end. Everyone we socialize with (we have a small daughter and there used to be a big crew of babies) has either left or is leaving in the next few months, the garage is less than half full — it’s a ghost town. They’re still raising rents and refused to negotiate with anyone we know. The building is rent stabilized so maybe they fear that lowering the rent will make it impossible for them to hit certain numbers over the next few years?

renewiltord 6y ago

It's really not a big change. The rent on the market is the visible marginal rate and skews upwards because of locations that are way above their market rate being not taken for a long time.

jjice 6y ago

> She and her roommate signed a lease on a two-bedroom apartment in the West Village for $4,995 a month Holy cow, I knew NY rent way expensive, but wow I didn't know it was that bad. Growing up in upstate NY, you could be a nice family ready home in my suburban home town for ~100K. Of course there were houses that went up to ~150K or even 200K, but 100K was standard for purchasing a home. I even though that that was a lot. I'm working in RI right now, renting a room outside the city, and I pay ~$500 a month for a room and all utilities. Have I just lived in very cheap places and the rest of this country is very expensive, or is it really just the big cities that have extremely expensive housing?

golf1052 6y ago
It's not just "big" cities, it's all cities at least according to this source [1]. I grew up in RI but I moved to Seattle after graduating college because I didn't want to live in RI anymore but job prospects for tech increase when you're in a city. I wonder what the cycle to expensive rents is? Wages from jobs start to increase in an area, some housing development happens, rents go up on those new developments to cover costs but also because their renters can afford it, repeat? 1: https://www.zumper.com/blog/rental-price-data/ https://www.zumper.com/blog/rental-price-data/
- TulliusCicero 6y ago
  > Wages from jobs start to increase in an area, some housing development happens, rents go up on those new developments to cover costs but also because their renters can afford it, repeat? The increased wages (more jobs + better jobs) leads directly to both new housing development AND increased demand for whatever housing currently exists. The latter is more impactful for higher prices than the former. > but also because their renters can afford it, repeat? This isn't quite how things work. Most landlords are always going to raise the rent to whatever the market can bear. Of course, how much people can afford does factor into that, but it's not everything. I can afford to buy milk that costs 10x as it does right now, but I wouldn't actually pay that because I have no reason to when cheap milk still exists. Landlords are able to raise rents when the demand for housing goes up faster than the supply, such that renters don't have better options available.

subsubzero 6y ago

A lot of engineers in my group as well as a few friends are leaving the SF bay area. Now that working there is no longer a requirement and everything is shut down, why live there? Oregon, Nevada, Colo, (cheaper areas of CA), all are places that they are heading to. Main reasons are cost, crowds(lack thereof) and overall better quality of life. Expect this trend to accelerate once more leases end.

bradlys 6y ago
And in my circle - none are leaving. We all recognize that leaving the area means leaving job opportunities behind too. We've seen what happens to engineers career trajectory who are remote at an in-person company.
- 01100011 6y ago
  So we can expect the population of the valley to shift towards even more career minded over achievers while normal folks flee. Great.
  - pm90 6y ago
    That’s a disingenuous characterization. SF job market and the Bay Area Technology “Scene” is what attracts a lot of “normal” people. One doesn’t have to be a career minded over achiever to want access to this job market.
  - bradlys 6y ago
    I mean - did we ever expect the trend to reverse? This region is built on the idea of professional opportunities (FAANG, bleeding edge tech, etc.) and the possibility of getting rich if you join the right startup (aka - buy the right lottery tickets/exercise-options). I've only seen it get worse as I've spent my time here. Has it ever been worse in terms of wealth disparity? I think it will continue to get worse short of radical change. (Prop 13 dying, rezoning w/ hundreds of thousands of apartments built, radical public transit, etc.)
    - 6y ago

asdfman123 6y ago

One dark thing the article doesn't seem to mention: what about COVID-19 evictions? Have to get new tenants when the old ones are being kicked out or going back home to live with their parents.

hackernews 6y ago
You're correct, it's dark thing and that no one is talking about it. How do courts open back up when 30%+ rentals are overdue on rent?

paulpauper 6y ago

>At the end of May, Ilana Freund landed a deal on an apartment in New York City where she will be attending graduate school. She and her roommate signed a lease on a two-bedroom apartment in the West Village for $4,995 a month. It was a significant discount: Similar apartments in the building were going for around $5,300 before the pandemic took hold, according to the listing agent. wow a whole 6% reduction. Odds are next year it will be back at $5,300. One way to offset this reduction is to increase the mandatory down-payment or increase min. duration of the lease.

xenihn 6y ago
it's primarily a big deal because this is the end of YOY increases that lasted for more than five years

holidayacct 6y ago

On a related topic, for those of you who maybe unemployed or know someone who is unemployed. Beware of rumor spreading when you are looking for work there are companies that are setup for a single purpose. They keep track of the recently unemployed and specialize in spreading rumors at every and any company that you interview at (They masquerade as in-person advertisers or MLM companies). They do this to keep you unemployed long enough so that they can force you into certain places at ridiculously low salaries, they then keep you in debt slavery to force you to purchase from certain places that landlords or shop owners benefit from. This happens all over the country and these vultures are taking advantage of people all over the place.

yodon 6y ago
Citation?

WalterBright 6y ago

Supply & demand actually works, even for real estate.

gliese1337 6y ago

Rents, and house prices, are going up where I live, reportedly as a result of all of the people leaving California cities and moving here instead.

austincheney 6y ago

Nearly $8000 for luxury one bedroom apartment. Money to burn. My house payment is about $1200 per month for 2800 sqft in one of the nations largest cities and that includes property tax. Plus I have equity on the house which has doubled in value over the last 10 years. Financially I really do not understand dumping cash into a lease without equity.

deleted 6y ago

[deleted]

forgotmypw17 6y ago

https://xx.reddit.com/r/AskNYC/comments/h9nzrg/my_landlord_is_dropping_my_rent_200_when_i_reup/ https://xx.reddit.com/r/AskNYC/comments/h9nzrg/my_landlord_i...

ethagknight 6y ago

Incidentally, I just opened a large urban apartment community in downtown Memphis, and we are leasing up at 2x the rate we planned on, for higher rents than we planned on.

bogomipz 6y ago

There's a couple of things worth at least considering. The article states: >"The two roommates were also given one month's rent free and did not have to pay a broker fee, which typically would have cost them 12% to 15% of the annual rent." There was actually legislation passed back in the Winter that effectively did away with the whole broker fee system.[1] I know a judge temporarily blocked this as per the article but that was only until June. >'"But, he said, more apartments are also available because people just up and left their leases. While many left when the pandemic shut down the city, others left later when the protests over the killing of George Floyd began, Gavzie said.' Generally you are legally obligated for the rent for the duration of your lease. So while a renter can "just up and leave", if they don't fulfill their obligations they can be sued. So if by upping and leaving a tenants pay's the remainder of their financial obligation then it would make sense that a landlord would give them a discount since they may be collecting twice on the same place for some period time. [1] https://ny.curbed.com/2020/2/11/21132836/nyc-broker-fees-law-real-estate-tenants-rights https://ny.curbed.com/2020/2/11/21132836/nyc-broker-fees-law...

exabrial 6y ago

I have a feeling commercial real estate is next in about 3-6 months

TheBobinator 6y ago

This articles takes 4 pieces of anecdotal evidence and concludes rents are dropping; there is no study, no calling around, no use of modern technology. Just 4 anecdotal pieces of evidence. Then everyone on HN is going to start talking about their anecdotal evidence which does exactly nothing for anyone. This is exactly the kind of drivvel and BS that does not belong on HN or frankly, published in 2020.