How the Pandemic Has Reshaped Real Estate in New York

There is hardly a place in the world that didn't feel the impact of COVID-19. Tourist locations took a significant hit at first, and it was pretty uncertain how they would survive the following months. And even larger cities saw notable changes in both the job market and real estate. So, it is only natural to wonder how COVID-19 has reshaped real estate in New York. In this article, we will try to sum up how the complex system that is NYC real estate has been affected by the recent pandemic.

How COVID-19 impacted NYC

To understand the impact of COVID-19, it is essential to keep in mind that it is a long-lasting, ongoing process. While it is easy to sum up the effect of a hurricane or a flood, the impact of a pandemic such as COVID-19 is usually much more complex. So, don't expect that we will understand the full scope of things for some time to come. As it is with most historical events, a certain amount of time needs to pass before analysts can agree on what truly unfolded.

Working from home

Once COVID-19 hit, most companies that could afford to implement remote work did so. While before it seemed impossible that so many people could work from home, COVID-19 convinced us that it is quite possible. As schools also went online, it became pretty difficult to live, work, and raise kids in the same space. Family relationships became quite strenuous in limited NYC apartments, and many people soon had a difficult choice to make.

Working from home became a reality for a large number of people.

Working from home became a reality for a large number of people.

Namely, for a substantial number of people, living in NYC was a work-related necessity. After a year or two, they decided that they wanted a family. But, when it comes to specific industries, it can be pretty tricky to find decent work outside large cities like NYC. So, to avoid stress and risk, they simply decided to raise their families in the Big Apple, no matter how cramped their apartments became. But, once working from home became a reality, it started to matter less and less where your home was. So, people began looking for places outside of NYC to settle in.

No NYC nightlife

Besides family people, you had young professionals who stayed in NYC simply for the nightlife. When it comes to clubs, restaurants, theatres, and art events, only a handful of places in the world can compete with NYC. This is why a lot of people decide to live out their twenties and early thirties here. Going out every weekend and enjoying all NYC has to offer.

Unfortunately, once COVID-19 hit, the nightlife was the first to go. All the glitz and glamour was closed off to prevent COVID-19 from spreading. As you can imagine, this caused a fair bit of stress for these young professionals. After all, they grew pretty accustomed to regular nights out.

Put the previous two together, and you'll soon see one of the most significant impacts that COVID-19 has had on New York real estate - a large number of people leaving it. As it is now, estimates vary as it can be hard to determine who left NYC for good and who plans to come back. Still, we are talking about over a hundred thousand people that left the metropolitan region. And if we take a look at NYC as a whole, over 300.000 people left permanently.

A New York Times article regarding Coronavirus The initial reports regarding COVID-19 in NYC were quite frightening.

The initial reports regarding COVID-19 in NYC were quite frightening.

As newspapers like to call it, this mass exodus leads to a sharp drop in demand for rental apartments in NYC. For a while, you could get a terrific apartment with parking for a fraction of its previous cost. After all, landlords had to find some way to make ends meet. And offering cheaper apartments seemed like the only feasible option. On the other hand, moving companies thrived as a ton of people suddenly needed help with relocation. But, as you can learn from bestmovers.nyc, this sudden surge in relocation wasn't meant to last.

Once things settled down

While it seemed that there would be no one left to live in NYC, things quickly settled down. While a decent chunk of the population did leave, a fairly large percentage remained. And as things went back to normal (as normal as possible), people soon started going back to old ways of life.

Renting in NYC

As it is now, both renting and the average renting cost are back on track. While there was a notable drop during the hiatus of the first wave of COVID-19, things have stabilized. Nowadays, you can pretty much assume that your NYC apartment would cost you as if there was no pandemic to speak of.

An empty street in NYC representing one way in which Covid has reshaped real estate in New York

The initial ways in which Covid-19 has reshaped real estate in New York soon lost their impact.

Buying in NYC

The homebuyer market in NYC remained surprisingly stable during the COVID-19 pandemic. Even though people left, there was no significant drop in home costs. After all, living in the Big Apple still has its appeal.

The only notable difference is with commercial real estate. As people started working from home, companies soon realized they had little need for large commercial spaces. So, more companies began to work solely online, therefore lessening the need for buying or renting commercial space. If you do plan on purchasing office space in NYC, be aware of potential dangers.

Final thoughts on how COVID-19 has reshaped real estate in New York

When trying to decipher how the pandemic has reshaped real estate in New York, you need to look beyond the obvious factors. We've listed so far only the aspects of real estate that are related to renting and buying. But, to truly see how COVID-19 has impacted the Big Apple, some time needs to pass. The lockdowns, the protests, the restrictive measures have impacted NYC as a whole. And, by proxy, will impact NYC real estate.

Real Estate in the Age of COVID-19 – How to Adjust

Nowadays, we are caught in a situation that nobody could have expected a few months ago. Last year, we were thinking about our plans and future vacations in 2020. However, our current reality is much different, since we are living and functioning in the age of Covid-19. While our wellbeing should come first, after some time, we must ask ourselves: what about our jobs and the economy?

Many industries were negatively impacted by the pandemic, but the real estate market is still staying strong. Yet, there are some major changes that must be made. Since social distancing is the main recommended measure against Covid-19, real estate agents are caught in a pickle. However, there is room for adjustment, and there shouldn't be any room for despair.

During the age of Covid-19 make sure you educate yourself

As a real estate agent, you should be always on your toes, ready to answer all sorts of questions. Now more then ever, you must be prepared. During the COVID pandemic, there are many serious buyers and sellers. Most people are looking to move from crowded places to places with less traffic and fewer people. Thus, you should seize this unique business opportunity.

Person using hand sanitizer

One of the things that everybody must know is that we must pay extra attention to our hygiene.

Grab the bull by the horns and approach every buyer seriously. More than anything, be prepared to put them at ease and calm their fears. You can only accomplish this goal if your fears are in check, so make sure to stay well educated on the matter of this vicious virus and its impact on our lives. Moving forward will not be an option if you don’t cover everything there is to know.

Face-to-face meetings are still an option

Since meeting in person might not be currently on the menu, put technology to good use. Use it to your advantage as the next best thing. There are many conference call platforms, such as Zoom, Google Hangout, etc., that you can use to virtually communicate face-to-face with your clients. Certainly, a simple phone call is always an option. Still, seeing your client at least over the screen is much more personal. It gives you a better opportunity to dazzle them and secure their future business.

A phone with the Zoom App opened

If you are looking for a platform for conference calls, Zoom is a great option.

Open houses can be done virtually

Every real estate agent knows that an open house is their golden ticket to selling a property. Not being able to organize them is a huge handicap for all professionals in this field. However, where there is a will, there is a way, so there is a solution to this problem as well. Organizing a virtual tour for potential buyers can greatly help you secure a deal. Still, it is not as great as a live open house would be, but clients will appreciate that you are operating in a safe and responsible manner.

What if a client insists on a tour of the property?

Staying safe this summer is on everyone’s mind and a primary issue. Yet, you might still come across potential buyers that will insist on seeing a property in person. If you are comfortable with such an arrangement, you can schedule a tour, but you will have to take some precautionary measures.

Make sure that you conduct the open house with one client at a time. Inform them that you will implement the necessary procedures to protect your clients as well as yourself. Also, make sure that they clearly understand that you expect the same in return. Not to mention that you should always remain at a distance of 6ft and avoid shaking hands. If your buyers aren’t serious about safety measures, don’t hesitate to point out to them that they should also be responsible. Of course, in a polite manner.

A key stuck in a doorknob

All real estate agents that aren't comfortable with meeting clients in person should avoid organizing open houses.

Moving in the age of Covid-19

We all know how dreadful a relocation can be. That is why most of us opt for hiring professional movers. The majority of moving companies are working and functioning very well, even now. Since moving businesses are considered essential, their operations are not restricted. This is important to know for every real estate agent since potential property buyers might be worried about their upcoming move.

A great way to go the extra mile for your clients is to help them make their choice of professionals, for example by visiting an online database at verifiedmovers.com or recommending a company that you had a positive experience with.

Be ahead of the curve

This is the time when you will either sink or swim. If you want to get ahead in this business, you have to think in advance. First, you need to master functioning during the age of Covid-19.

But what happens once it is over? Can you anticipate how will the real estate market shift? Will it shift at all? What will happen with the needs of potential buyers? How will they change? Do you know the answers to these questions? If the answer is no, you should hop to it. For some businesses, the pandemic has been a blessing in disguise, because they manage to adjust, unlike their competitors. Make sure that, in the end, you come out of this situation victorious.

 


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Missouri License Renewal COVID-19 Update and FAQs

When do I need to renew my Missouri real estate license?

Due to COVID-19, Missouri has issued the following license renewal deadline extensions:

  • The current 2020 Broker renewal and CE deadlines have been extended until August 31, 2020.
  • The current 2020 Salesperson renewal and CE deadlines have been extended until October 31, 2020. The renewal period for Salesperson licenses begins August 1, 2020 and will run through October 31, 2020.

Click here for more detailed COVID-19 policy update information.

What are my Missouri real estate continuing education requirements?

Salespersons and Brokers in Missouri are required to complete 12 hours of continuing education each two-year license cycle. At least three hours are required to be in a core topic (MO Laws, Broker Supervision and Escrow Account Management, Fair Housing, Property Management, Commercial Brokerage or Agency and Brokerage Relationships).

Are your courses approved by the Missouri Real Estate Commission?

Yes! Our school ID is 30300. Course approval numbers are included in the course title.

Do you report my continuing education to the Missouri Real Estate Commission?

Yes! We will report your continuing education course completion to the Missouri Real Estate Commission within 10 days. It can take 24-48 hours for the completed course to be reflected in your online profile.

How long do I have to complete my courses after I purchase them?

Individual courses are available for six months from the date of purchase. The purchase of a package will give you access to the course work for the full length of your licensing cycle (2 years).

Do I have to complete courses all at one time?

No! You do not have to complete each course in one sitting. Your courses are available to you from any internet enabled device, and our system will keep track of where you start and stop.

Our courses are usually broken into 20-25 minutes intervals, which will make it easy for you to complete your course when it’s convenient for you!

How do I renew my Missouri real estate license?

Missouri Real Estate Commission will mail out a paper renewal notice that will include your license number and PIN. This is usually sent mid to late April for brokers and mid to late July for Salespersons. Once you have that information you will be able to renew your license online.

How much does it cost to renew my Missouri real estate license?

$50 | Broker (Active or inactive)

$40 | Salesperson (Active or inactive)

$150 | Non-Resident Broker (Active or inactive)

$100 | Non-Resident Salesperson (Active or inactive)

Fees Schedule

I missed the due date for my Missouri real estate license renewal, can I still renew?

Yes, however, your license will not be considered active, and you will not be able to engage in any real estate activity until your license is reinstated to active status. Late renewals are subject to a $50 per month or partial month penalty, up to a $200 maximum. Late renewals cannot be submitted online.

Do I have to complete any continuing education if my Missouri real estate license is inactive?

No. Continuing education is not required while on inactive status, however, before the licensee can activate the license, completion of the 24-hour Missouri Real Estate Practice Course is required.

Does Missouri have reciprocity with other states?

Yes, Missouri does have provisions for individuals who hold a real estate license in another state/jurisdiction. Click here for more information.

 


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