(NEW YORK, NEW YORK)— In 2019, New York saw massive changes to the real estate market. New legislation conferred tenants with historic new protections, and changes in the market nationwide saw buyers at an advantage rather than sellers. The Brick Underground reports its predictions for 2020.
Renters and Landlords
Renters can expect to benefit from historic new protections instituted in June 2019. However, they should also expect to see vigorous pushback from landlords and realtors against the new laws.
The rental market is expanding as the buyer market slows, especially for high-end clients. As landlords face less difficulty filling units, renters will see fewer bonuses attached like one-month free or no broker’s fees.
Brick Underground sponsor Himmelstein, McConnell, Gribben, Donoghue & Joseph claims market rate tenants might feel the squeeze more from the expanded protections for tenants in rent-controlled units. Supposedly, the new protections might see costs shift to renters in a building whose rents can be steadily increased, although expanded legislation also provides new protections for these tenants as well.
However, absent basic decency, landlords don’t see any incentive to renovate apartments for rent-stabilized tenants without the hope of increased profits from higher rents. While rents are at a record high, landlords threaten that without the incentive of profit, buildings will fall into disrepair. Perhaps 2020 will see an expansion of landlord negligence laws.
While landlords are hoping to repeal rent protections, we might see even more progressive tenant protection legislation. That includes the reregulation of rent-regulated units that had become unregulated, and the good cause eviction bill, which is back on the docket after being passed over last year.
Buyers and Sellers
Low home prices and low interest rates on mortgages make it the perfect moment to buy in NYC. The buyer’s market also means a shaky seller’s market, and short supply as potential home sellers wait to fetch higher prices. Changes to tax lawsand deductions are also making sellers more reluctant.
Luxury developments continue to spring up around NYC, but are struggling to sell units. However, because of the surplus of potential renters, expect more owners to rent than sell in the current market.