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Immediate Implications of the Coronavirus for NYC Real Estate

Coronavirus, Legal Developments, NYC, Other, Real Estate Developments, Real Estate Legality

As the coronavirus pandemic rapidly impacts all aspects of daily life, a number of its implications are coming into view for the city’s real estate market. First, the pace of construction is unlikely to slow down in the immediate term due to the amount of long-term planning and the nature of supply chains. Although some disruption is expected from China’s industry, purchases of steel and concrete are made months in advance and this should not disrupt ongoing projects. The same goes for other actors in the real estate industry like contractors and architects, who often have long-term billing arrangements. [1]

On the demand side, the picture certainly looks a little different. Restrictions are coming into place quickly on open houses, and although it will be a good time for buyers due to the rapid decline in interest rates, it remains difficult to predict consumer behavior in purchasing or renting real estate.

On the legal side of real estate, we have already seen orders to halt alterations on buildings in New York City as part of emergency measures to focus staff on essential duties. We can expect similar changes to be rolled out as different buildings adapt to the sudden changes and focus on maintaining core services to their units. Buildings are also taking measures to protect their residents by increasing cleanings and providing hand sanitizer. With many New Yorkers now working from home it also seems likely that efforts to fortify or boost broadband will be important as strains are placed on residential computing systems while offices built for capacity remain quiet.

The situation remains highly fluid and there will undoubtedly be more developments across the board that we will monitor and cover.

[1] Spivack, C. (March 2020) NYC real estate braces for coronavirus disruptions from Curbed NY https://ny.curbed.com/2020/3/3/21161971/nyc-real-estate-construction-coronavirus Accessed March 16 2020

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