For the last couple of months, real estate reports have shown that vacancy rates (particularly in Manhattan) have fallen owing to landlords offering more concessions to renters. A new report is somewhat contradicting that notion, and suggesting that vacancy rates will skyrocket in the coming years, the Wall Street Journal reports.
The analysis, by Ten-X Commercial, predicts that the vacancy rate will rise to 11 percent by the end of 2018. At present, the vacancy rate is hovering at about 3.8 percent, according to data collected by Reis, Inc.
The Ten-X report goes on to elaborate that at least 40,000 new apartments are set to hit the market by the end of 2018. Long Island City is sure to lead that charge in the city: it’s currently outpacing the rest of the United States in terms of new construction. A report in March also pointed to the existing glut of rentals in Downtown Brooklyn.
The Ten-X report goes on to add that due to the increasing concessions rents will decline 2.7 percent annually on average: something most New Yorkers sure can celebrate about.
Other real estate experts the Wall Street Journal spoke with refuted these predictions, and said things weren’t looking as bad for NYC landlords. They predict that if rents go down more residents from outside the city will be drawn to boroughs like Manhattan and Brooklyn, thereby filling up the vacancies.