Long lines in the cold, fierce competition and bidding wars.
This has become the reality for New Yorkers who are flooding the rental market in search of apartments, an increasingly scarce commodity less than two years after a pandemic-related exodus had some predicting the demise of the city.
Some people who left New York during the pandemic are moving back. And those who stayed are looking for more space or an extra bedroom they can turn into an office as they continue to work from home. That hunt for breathing room and amenities has led to record-high rents and low inventory, leaving apartment hunters with a new reality that used to be the purview of buyers alone: Bidding wars.
“The rental market is just on a different type of scale right now in terms of how quick paced it is,” said Ava Howard, a licensed real estate salesperson for Berkshire Hathaway HomeServices. “It’s all about who’s fastest and who’s willing to pay the most. It’s like buying a home right now. It’s so competitive.”
Amanda Ellison, 37, started looking for apartments in New York City about a month ago even though the lease on her place in Brooklyn isn’t up until July. But Ellison, who works at a tech consultancy, and her partner are in desperate need of more space. The couple’s 550-square-foot studio has transformed into a full-time office as both of their jobs pivoted to remote work.
“We’re at the point where we need doors,” said Ellison. “We can spend a little more on an apartment and we’re pretty shocked at how little that helps right now. It’s just stunning how little that gets you.”
The couple has placed two desks up against each other in their tiny space. If they have Zoom meetings at the same time, one of them has to take the call from the bathroom, depending on which call is more important. But even with an additional $1,000 in their budget, the hunt for apartments has been brutal.
Last week, Ellison spotted a one-bedroom unit on 69th Street in the Upper West Side. For $3,100 it would get them more space, a dishwasher, big windows, and most importantly, proximity to Central Park. Within hours of it being listed, Ellison emailed the broker of the apartment who responded with a heads up: It appeared to be headed for a competitive bidding situation.
The unit only stayed on the market for a day and a half, according to Corcoran broker Tiga McLoyd. After 61 inquiries, 13 showings and eight offers, it rented for $3,625, 17% above the asking price. McLoyd, who has been a broker in New York for about 20 years, said he’s never experienced bidding wars for rental apartments — until now.
“It’s absolutely brutal,” McLoyd said. “A year ago today, everything was in the renter’s favor. Now, it’s the exact opposite.”