The cost of renting housing in major cities is falling: how much you can now live in New York
In the United States, rents rose slightly in August compared to previous years, but they continue to decline in some large metropolitan areas. Writes about it Fox Business.
According to the latest data, rents nationwide last month rose 0,1% and prices were about 0,3% higher than in the same period last year.
The researchers noted that, as a rule, during this time of the year there is a stronger increase in rents. If we analyze the last six years, then the growth in prices for rented housing from March to August usually ranged from 1,2% to 2,5%. Thus, the growth rate this year is unusually low.
At the same time, in some large and expensive housing markets, rents continue to decline. In San Francisco, apartment prices have dropped 4,7% since March, the largest among major cities. However, the average rent for a two-bedroom apartment as of August is still high at $ 2. The rent has dropped 956% over the last month.
New York has seen the second largest decline in rental prices, down 3,9% since the start of the pandemic, followed by San Jose, California and Miami, Florida, down 2,8% and 2,4%, respectively.
In August alone, rents in New York fell 1,1%.
“The fact that we are seeing rent declines during what is typically the peak period for rental activity reflects financial hardship and changing preferences caused by the pandemic,” the researchers write.
Both New York and San Francisco are facing a tenant shortage due to the pandemic.
On the subject: How to terminate the rental agreement without penalty
In San Francisco, teleworking in high tech has given workers more opportunities to live in cheaper neighborhoods. Many big tech companies such as Twitter and Facebook, for example, are at the forefront of expanding remote work opportunities.
In New York, a severe outbreak of coronavirus in the early spring, combined with the ability to work remotely, has pushed residents to seek temporary or permanent housing in nearby suburbs, and in some cases in other states altogether.
Overall, the researchers said the sluggishness of the US real estate market was due to the difficult situation in the healthcare industry.
In addition, the pandemic's widespread economic impact on the US workforce and American families has played a role in changing rental rates.
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