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NYC’s Rebounding Rents Shine Light on Long-Standing Crisis

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“Two years after the pandemic, the city is returning to” normal, “but the” normal “of the pre-pandemic real estate market is not what we should aim for. “

Adital War

An apartment in Williamsburg, Brooklyn.

Before the COVID-19 crisis, New York City was hit by a housing crisis.

The year before COVID rocked the city, Nearly 50% of residents pay more than 30% of their income for rent.. For tenants paying rent, the pandemic sent them across the edge. Tenants who have managed to cling to the past two years now find themselves on the other side of the rent increase.City Rental Guidelines Committee recently proposed 2-4 percent increase For one million rent control units, despite the ongoing hardships of tenants. For market-priced tenants, the story is much worse and requires state intervention to control price cuts.

We are students enrolled in community-based research classes at City University of New York, with one in ten pre-pandemic undergraduate students. Lost access to permanent housing every year.. As part of the coursework, New York City’s oldest tenant union, Met Council on Housing, shared data from the tenant rights hotline from January 2021 to early April 2022. Yoker information about your rights as a tenant. Between January 19, 2021 and April 3, 2022, the hotline made 5,033 calls.

When COVID-19 spread to New York City, many tenants fled and the apartments remained empty. City vacancy rate averages 6.5% In 2020, it reached 10.5 percent in Manhattan. The landlord, desperate to fill an empty unit, offered to concede his rent. Now, as the lease signed during the pandemic ends, so does the lover’s deal, and the landlord is pushing rent to new highs.

Data from the apartment list is for the entire city, Rent in April 2022 is 31.8% higher In April 2021, it increased year-on-year. Almost twice the national average 16.3 percent. Street Easy Market Report for the First Quarter of 2022 Manhattan’s rent has “raised nearly $ 1,000 a month from the same period last year, reaching a record high of $ 3,695.” The report continues that tenants looking for an apartment are facing a “competitive market” thanks to “record high rents, low inventory, and very few concessions.”

There is also an increase in Met Council data on housing. Tenants who have shared with hotline volunteers that they have faced a sharp rise in rent since the beginning of 2022. In January, a tenant called after receiving an update with an increase of $ 500. In February, another tenant called for a renewal with a 35% rent increase. The following month, another caller reported that the landlord wanted to raise rent by 40%, and another caller reported a $ 700 increase.

Between January and March 2021, the hotline received 24 calls regarding rising market rates. At the same time this year, the number tripled to 72. During the first three months of 2022, questions about rent increases accounted for 18.9% of all calls from tenants at market prices.

Tenants with regulated rents are usually protected from exorbitant rent increases. Their rent is set annually and landlords cannot legally raise their rent above those levels. Market-priced tenants do not have the same protection or protection against the problem. If the landlord decides not to renew the rent, or raises the rent by 50%, the market price tenant is unreliable. For tenants who cannot raise their rent, these are de facto evictions.

Rent increases put tenants at risk of moving.Even among the recipients of Funding for an emergency rental support programMarket-priced tenants were twice as likely to call the hotline for fear of renewing their leases than tenants with rent restrictions. The only way to prevent movement is to fight for change. In Albany, the Good Causes Eviction Bill, introduced by Senators Julia Salazar and Pamela Hunter, gives millions of market-priced New Yorkers the right to stay home and landlords every time they renew their leases. The amount of rent that can be raised is limited.

The landlord expressed concern about the landlord’s abandonment, which was widespread in the 1970s, and allowed tens of thousands of apartments to be withdrawn from the market (thus exacerbating the housing crisis), but real estate sales recovered. , Making money

Two years after the pandemic, the city is on its way back to “normal”, but the “normal” of the pre-pandemic real estate market is not what we should aim for. Before the COVID crisis, gentrification shook New York City. Now that 2022 rent breaks old records, we must take action to end the affordable crisis. Our investigation does not reach any other conclusions.

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