New York’s Rent Growth Momentum Takes a Dive in April

Rent growth momentum in New York apartments took a dive in April, amid the COVID-19 pandemic. After growing steadily for the past two years, annual rent growth in New York fell back to just 1.3% in April. Though slightly above the U.S. average (1.0%), that rate was well below the 3.5% annual increase New York recorded in March. One of the nation’s hardest hit areas during the outbreak, New York’s recent annual performance was primarily impacted by rent cuts of 0.9% in April, the market’s weakest monthly performance in over three years. Previously, New York had been gaining notable momentum in rent increases, at a pace well ahead of historical norms. Despite very tight occupancy, rent change levels have historically registered below the national average partly due to rent controls and affordability issues, as New York is the nation’s priciest market for renters. Still, occupancy remains one of the tightest in the country for a market this size. Rent growth measures are likely to be impacted for some time, as New York’s moratorium on COVID-related evictions has been extended through August 20. New York’s Comptroller estimates around 900,000 New Yorkers, or one in five workers, will have lost their jobs by the end of June.