New Yorkers who worked from Florida during the pandemic may need to return to the Big Apple soon. Companies are requiring their employees to return to face-to-face or, failing that, a hybrid, but never just home office. A study carried out by three American universities considers that this massive movement will result in rental prices decrease in Miami and the opposite happens in New York.
The report, prepared by experts from Florida Atlantic University, The University of Alabama Y Florida Gulf Coast University They estimate that, by 2023, the rental canon in the New York metropolitan area will increase by around 21%.
When the Centers for Disease Control and Prevention (CDC) announced social distancing measures, many employees moved to Florida and went through the Covid-19 pandemic there. Now, human resources experts have pointed out that they have had to “force” their workers to return to face-to-face activities.
This is a view that Elon Musk fervently supports.. The most millionaire man in the world put two options on the table for his Tesla employees: either they returned to the office or they could resign.
Likewise, one of the reasons why rents would have increased in Miami would be precisely the massive arrival of people in New York. In this way, the level of demand would have been so high that the real estate market responded with significant increases. In fact, in Florida there was a “rent war”where he managed to lease the one that offered the most.
So aggressive has 2022 been when it comes to real estate, that on average, the lease of a home in the United States exceeded $2,000, according to a report by Redfin. In some cities like Austin, Texas, the price almost doubled. However, Miami was not so far from the podium and ranked as the fifth most expensive metropolis in the country, with an increase of 29%.
The consequences generated by the “Covid-19 refugees” when migrating to Florida are significant. As soon as the pandemic began and New Yorkers moved into the city, prices skyrocketed in Fort-Myers (Southwest Florida) and Miami (southeast). According to a Florida Atlantic University report, the real estate market in these areas is one of the most overvalued in the country.
Under normal conditions, rents could increase between 3% and 5% per year. However, not all the news is bad. The report from the three universities reflected that the numbers in the real estate market in the southern state “would be on track to decline dramatically next year, at the same time as would increase rents in the New York metropolitan area”.
Now, with the return of many to New York, it is estimated that a change of roles will take place and prices will skyrocket in the Big Apple. According to experts, rental fees will experience a cooling and then a fall.