STATEN ISLAND, NY – As rents drop in New York Metropolis amid the coronavirus pandemic (COVID-19), Staten Island residences have retained their worth and stay in excessive demand, in keeping with native realtors.
Following a report from Streeteasy.com which revealed that hire costs in different boroughs have reached document highs, actual property specialists say the Staten Island residence market has not been affected by the pandemic.
Streeteasy mentioned the hire index fell 16.8% year-over-year in Manhattan, with rents falling to a brand new low of $ 2,700 per 30 days. The report says that earlier than the pandemic hit, within the first quarter of 2020, the median asking hire in Manhattan was $ 3,417.
However on Staten Island, costs seem like holding regular.
“The Staten Island rental market could be very completely different from a lot of the remainder of town and was not affected by the theft from town throughout the pandemic like different areas did,” mentioned Sandy Krueger. , CEO of the Staten Island Board of Realtors (SIBOR). “In truth, Staten Island has obtained a number of the metropolis’s motion.”
RESIDENTS FROM OTHER BOROUGHS
In the course of the pandemic, many tenants fled Manhattan and Brooklyn for Staten Island, in keeping with realtors.
“The age-old idea of provide and demand stays on the coronary heart of all market fluctuations. As soon as once more, Staten Island continues to shine because it did after 9/11, the 2008 recession and SuperStorm Sandy in comparison with our neighboring boroughs, ”mentioned James Prendamano, CEO / Affiliate Dealer of Casandra Properties Inc. , which has two of the workplaces.
“It is no secret that Staten Island lacks vertical residence choices. As New Yorkers retreated from different elements of town, Staten Island continued to emerge as a viable choice for residents looking for somewhat extra elbow room. The residential rental market has remained robust and the gross sales market is on hearth, ”he added.
Krueger famous that it’s tougher to maintain up with rental costs and demand on Staten Island than in different boroughs, as nearly all of leases are in personal houses and are marketed by house owners quite than actual property brokers. .
“Staten Island is a distinct animal in and of itself as a result of it has confirmed itself time and time once more on so many controversial subjects,” mentioned John Salis, proprietor and actual property investor of Staten Island. “Staten Island actual property values are considered one of them as a result of they’ve at all times been left behind in comparison with all the opposite boroughs. This reality for as soon as might be an excellent factor for the individuals of Staten Island. “
Salis mentioned excessive rents in different boroughs might trigger a “runoff” that might profit Staten Island.
“When actual property values are at an all-time excessive, some landlords overuse their belongings and wager on tenants to proceed with these excessive rents, however it might backfire when the world faces a pandemic disaster. and that these promising hire bonds should not price as a lot as they had been initially, ”he mentioned.
“In my humble opinion, I feel this might be an excellent lesson for these excessive threat takers, however alternatively, I might perceive that the upper the chance, the upper the reward. In the case of my private investments on Staten Island, I have never seen or felt the influence, ”added Salis.
RENTALS IN THE GREAT HAUTS OF STATEN ISLAND
In the meantime, leases in high-rise buildings on Staten Island, like Bay Avenue Touchdown in St. George, are actually seeing a surge in demand as extra individuals are vaccinated and need to see residences for hire.
“The rental market from 2020 to 2021 has modified as a result of in 2020 individuals weren’t positive in the event that they had been going to have a long-term job. They had been very hesitant about the place to go and whether or not to go away their residence. However now the job market appears to have picked up a bit, and individuals are going again to work, ”mentioned Anise Levitas, an actual property saleswoman for Mr. Donato & Co. in Richmond, who manages quite a few gross sales and leases for Bay Avenue Touchdown. .
She mentioned she believes once we come out of the pandemic residence rents throughout town will rebound. However it can most likely take time.
“New Yorkers are very resilient, particularly on Staten Island. They have an inclination to neglect and transfer on, ”Levitas mentioned. “For my part, quite a lot of what occurs within the rental market right here has rather a lot to do with what occurs in Manhattan. And I feel it is gonna take two or three years [for Manhattan] to choose it up your self.