It’s a story of two rental markets in the Bronx. New York City apartments are once again the most expensive in the country, even though sweeping restrictions, shutdowns, and economic stimulus have had little effect on slowing the increasing rent trajectory.
Meanwhile, in the Bronx, where asking rentals have topped out at $538 per room, this hasn’t translated into a bonanza for landlords who are still struggling with collections and rising costs. Apartments are being stored at 2020 levels, with 28 percent availability as of March 2019.
According to RM Friedland’s Bronx Neighborhood Apartment Rent Survey & Analysis, this is the trend. The Bronx Borough Special Report highlights pricing and availability trends in the multifamily sector. The intricate interplay between the eviction moratorium and basic supply and demand rules in the multifamily sector is explored in this research.
The value of rent-stabilized properties dropped by 30-50 percent in a matter of months. Value destruction was documented in reports, studies, and interviews. Low borrowing rates and established business families are keeping the majority of the market alive right now. The eviction moratorium will end, but there will be residual guidelines and policies in place to keep the collecting struggle going. For example, right present, one of the requirements for obtaining relief is that you cannot evict the renter for a set amount of time. It’s a backdoor approach to keep the moratorium in place.
Owners and investors are both cautious and optimistic. The unpredictability of the last few years has caused landlords to second-guess their every move, which is natural given the circumstances. Although it may be difficult to believe, some landlords remain hopeful.
The silver lining can be found in people’s faith in New York City. Real estate families with several generations have witnessed New York’s ups and downs, as well as its comebacks. Given New York’s resiliency and the fact that a new administration is about to take office, some New York landlords may be able to maintain optimism in their decision.
The Median Ask Per Room in September was $538, up from $499 in March 2019, according to the RM Friedland Special Report. In September, the median asking price per apartment was $2,050, up from $1,850 in March 2019 but down from $2,100 in July 2020. The number of available rental apartments in the Bronx has decreased in recent years, from 2,810 in March 2019 to 775 in September 2021.
Despite several financial and regulatory obstacles, investors continue to have a bullish perspective as they take advantage of ‘cheap’ money via refinancing and acquisition loans. In the medium term, it appears that prices will be strong due to a scarcity of inventories. Put your seatbelts on for the year 2022.