New York real estate trails other major market recoveries
The state's unemployment and mortgage delinquency rates remain high
The New York real estate market is still experiencing a challenging recovery period — driven largely by hardships in Manhattan, which was severely hit early on in the coronavirus outbreak.
New York’s housing market was the most affected by the coronavirus-related recession as of last month, according to Bankrate’s Housing Hardship Index.
The index is based on Black Knight’s mortgage delinquency rate for July and the state unemployment rate, two metrics where the Empire State ranked particularly high.
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As of last month, the New York state unemployment rate was 15.9% and the mortgage delinquency rate was 8.38%.
“States experiencing high unemployment will see mortgage delinquencies surge if unemployment remains elevated as forbearance periods expire,” Greg McBride, Bankrate chief financial analyst, said in a statement. “This year may see the worst for unemployment, but 2021 will likely bring the worst for mortgage delinquencies and defaults.”
Following New York, Nevada and New Jersey ranked second and third, respectively, among the states with housing markets most affected by the recession. Mississippi and Massachusetts rounded out the top five.
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Jonathan Miller, president of Miller Samuel Inc. in New York City, told researchers that Manhattan home sales had slowed significantly — but activity had begun to pick up in the city’s outer boroughs and in the suburbs.
According to data from the Real Estate Board of New York, total investment and residential sales activity in New York City in July decreased by 52 percent year over year.
As previously reported by FOX Business, three moving companies noted a significant uptick in move-outs from the Big Apple.
Roadway Moving president Ross Sapir told FOX Business that it is the busiest summer he has ever had.
New York’s Democratic Gov. Andrew Cuomo joked during a press conference that he has been bribing his friends to return to Manhattan with promises of free dinners and drinks.
“We’re trying to get people to come back,” Cuomo said. “They’re not coming back right now.”