In a city of high taxes and mass migration; rents are actually dropping in Manhattan. According to the latest report from Douglas Elliman Real Estate, Manhattan rents dropped to their lowest levels since 2014.
Big Drop In The Big Apple
Manhattan rents dropped an average of 2.7% in December, the lowest rate in four years. The new tax plan set to take effect is partially to blame. With the cost of living in New York set to increase due to the change in SALT deductions, homeowners are finding it difficult to rent or sell their homes.
Overall, sales activity in the fourth quarter of 2017 was at a 6-year low. At the same time the number of days a house was listed on the market also rose. Curiously, the number of listings actually increased.
Signs point to Manhattan owners looking to sell their properties and get out while the getting’s good. New York has incredibly high state and local taxes and the new tax bill is likely to exacerbate their effects.
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