New York City is not like any other city in the world because people from all over the world flock to NYC to enjoy the extraordinary lifestyle. Well, it makes sense because most of our favorite tv shows and movies take place in one of the largest cities, such as Gossip Girl. New York is one of the largest cultural centers in the world and is a famous tourist attraction. However, the global pandemic has turned New York into a deserted island.
The ongoing pandemic has altered the entire economic situation of the country, affecting NYC the most. New Yorkers left urban areas and fled to suburban to protect themselves, leaving all their belongings behind. With this, New York City landlords found themselves growing increasingly desperate as apartment vacancies soared. Many had no choice but to offer months of free rent to entice tenants to commit to leases.
According to sources, in December, the median rental price of a Manhattan apartment was $2,800 a month, down 17.3% from a year prior. And while there was an uptick in leasing activity toward the end of 2020, the vacancy rate, which sat at 5.5%, was the third-highest on record. Furthermore, many insiders feel that the vacancy rate doesn’t accurately represent the true number of unoccupied apartments.
The virus has also closed down public places such as theatres and cinemas, emptied offices, halted tourism, and turned shopping and dining into hazards to be undertaken at your own risk, gutting industries that employed a fifth of the city’s workforce. The whole situation has increased the unemployment rate and swollen the ranks of the homeless. Many of us wonder if New York would ever be able to go back to its original state.
Let’s take a look at some points that could lead the city to a recovery:
- Tourism: The tourism sector is one of the most important sectors in New York City, with more than forty-one foreign and domestic tourists per year. The absence of tourists has caused several hotels and tourist attractions to close down. As soon as the situation gets better, tourism will return to Big Apple and enhance the overall financial situation.
- Back to Office: The pandemic has driven many people to work from home and fired most of its employees. Once congregating in offices becomes safer, people will move back to the offices, and normal routines will take birth again.
- Nightlife: NYC’s nightlife is one of the major money-making sources. Shutting down of bars, restaurants, cinemas, and Broadway has halted the nightlife of many people. Concerts aren’t happening, but once it becomes safe to open everything, rental demand will bloom, and money will be pumped through these sources.
Let’s hope New York City passes all the hurdles and reinstates itself back to its former state!