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New York City has always been equally expensive and sought after. It is one of the largest cities in the entire world. You can expect a lot of people to come here and compete for housing. However, the real estate market has changed due to the pandemic. Because of COVID, both owners and sellers have gained the upper hand over buyers and renters. It seems that the prices have never been as high as they are currently. Even though the pandemic might seem to be all over, some experts believe that rents are to continue to rise. For this reason, it is important to prepare well if you plan to come here with movers NYC. Here is a complete guide through NYC real estate in 2022. 

Renting in NYC 

Starting from the most common housing option, hunting for a rental in 2022 might not be the best idea. Before the pandemic, you could have easily found many deals. However, because of the pandemic, almost every landlord stopped offering the same deals. For example, if you are moving to Manhattan, there is an intense increase during the last two years. Brooklyn and Queens are a little bit better when compared to Manhattan. Still, real estate experts believe the turbo-charged rental market is starting to slow down. Nowadays, many landlords are starting to offer the same or similar prices before COVID happened since a lot of renters cannot really afford to pay rent, and they will eventually leave. For this reason, many landlords are slowly starting to change their practices. This could lead to more vacancies and better deals mostly in Manhattan and Brooklyn. 

NYC real estate in 2022 for high buildings
Manhattan is the most expensive part for renting and buying

Rental predictions for 2022 

The best way to describe the current situation of NYC real estate in 2022 in the rental market would be to say that the high and low parts of the rental market are like two different cities. There is a need for larger apartments in NYC. More space means more money which leads to extremely high prices. Again, the main reason behind this would be the pandemic. Since many people are working from home, they need more space, especially if they’re living with a family. Even though the pandemic seems to be under the control, many people are still skeptical. Since they don’t know when a similar catastrophe might happen, they would like to ensure they have the space they need. Before you hire Brooklyn movers, you should hear the rental predictions. Unfortunately, it seems it is only going to get more expensive with a little bit of hope of going back to normal. 

What should you expect if you are a buyer? 

Again, this situation is not the best. Throughout the previous year, the number of Manhattan and Brooklyn housing options did not keep up with demand. This led to bidding wars, a lack of discounts, and an increase in prices. Luckily, if you plan to purchase a house or apartment in NYC, it might be a little bit easier than finding a place to rent. Looking at the current state, there should not be any extreme inventory shortages for at least another year. In addition to this, a bright spot for all the buyers was a normalized pattern of spring and fall seasons. If you plan to purchase a property, you might have a better chance as opposed to renting. Therefore, you can book packing services NYC since the prediction for buyers is more positive.  

a busy street in NYC
Purchasing a property has become a fierce competition

Mortgage rates in NYC

Some good news among all the negative predictions for NYC real estate in 2022. It seems that NYC buyers have cheaper loans than ever before. Nowadays, you can get the loan limit for mortgages going all the way up to $970,000 which is a huge increase from $822,000. However, there has been a change in guidelines to prevent buyers nationwide from purchasing properties in NYC. Usually, these buyers would not have sufficient funds to pay for structural repairs or repairs involving structural integrity. For this reason, there is a new reserve fund requirement. Buildings can keep 10% of their budget as a reserve fund. However, since mortgage rates are quite low, interest rates might rise three times. As of now, mortgage rates are around 3% which can increase by 0.25 or 0.5%. For this reason, make sure to check all your options carefully before committing to buying a property in NYC. 

NYC real estate in 2022 for sellers 

On the other hand, if you are planning to sell this year, the market is not the best. Prices won’t recover until 2024. The main reason behind this would be international buyers and investors that have been sitting out from the market. Nowadays, there is a thing called a COVID discount. In 2021, this discount was usually around 5 to 7%. This might change in 2022 since the recently covered discount has been less than 5%. On the other hand, if you’re selling a renovated apartment, you might have more problems. These would be the following reasons why many buyers are staying away from renovated condos. 

  • Major backlogs 
  • Shortages for appliances 
  • Shortages for parts and materials 
  • Higher prices 
  • Delays 

Both the renovated and unrenovated units are not enjoying popularity. It seems that the supply chain is broken down. Lastly, apartments with private outdoor space will have more popularity. 

cars parked on the street
It is difficult to sell renovated units in the current market

Should you buy, rent, or sell a property in NYC? 

As you can see, NYC real estate in 2022 is still recovering from the pandemic. The prices are still quite high when compared to a couple of years back. As many experts believe, the market might go back to normal either in 2023 or 2024. Still, if you plan to rent, buy, or sell, it is not impossible. In order to have a bit more success in your endeavors, you should get professional help. This would mean hiring a real estate agency. They should be able to help you to navigate the post-COVID real estate market. Of course, this is not mandatory so you can try to do everything alone as well. 

 

About Author

Born and raised in the upper east side of NYC. I consider myself an expert with anything moving or storage related aspects in New York City. Having been in the NYC relocation industry for almost two decades I found myself at a point that I am able to answer and help my clients on the first phone call. NYC is amazing and I can't wait for it to recover from the COVID related closures. Feel free to email or call anytime! 212-244-4011