‘Financially Devastated’: 87% Of NYC Bars, Restaurants Couldn’t Make August Rent… Covid Upends Middle-Class Family Finances

‘Financially Devastated’: 87% Of NYC Bars, Restaurants Couldn’t Make August Rent

A survey found that 87% of New York City restaurants, bars, and nightlife venues couldn’t pay their full rent in August as the city grapples with permanent business closures and unemployment.

The survey by the NYC Hospitality Alliance also showed that 34% of these establishments couldn’t pay rent at all, Patch reported.

The results, which were released Monday, come ahead of the scheduled reopening of indoor dining at 25% capacity starting Sept. 30. If positive rates for coronavirus don’t show significant increase, the capacity will be raised to 50% by Nov. 1, according to Eater.

But many restaurants are struggling to remain afloat in the meantime, and outdoor dining seemingly failed to help many businesses survive the warmer months of the pandemic.

“Restaurants, bars and nightlife venues have been financially devastated by the COVID-19 pandemic,” Andrew Rigie, the group’s executive director, said in a statement according to the NY Post.

 

The family is running low on savings and can’t keep up with $9,000 in monthly debt

“I will never claw my way out of this situation”
“It frustrates me to not be able to earn a living” says lawyer A. Hopkins.

white collar family, 2 kids, formerly financially secure
living in NYC suburbs, old income was $175K
no job, no prospects, huge debt load, no marketable skills other than paper pushing in a system that is rapidly decaying

 

Manhattan Sees Largest Decline In Housing Sales In 30 Years, Apartment Contracts Down 76%

Manhattan real-estate sales have seen the largest decline in 30 years as apprehension about coronavirus continues and buyer preferences shift, the New York Times reported.

A report from the brokerage Douglas Elliman reported by the New York Times found that the number of closed sales in the second quarter decreased by 54% compared to the same quarter in 2019. The cost of buying has also plunged 17.7% compared to the same quarter a year ago.

There were also only 1,147 sales in the quarter, marking the lowest number on record according to a study by Compass.

Most indicative of the market’s pulse is the number of apartment contracts signed, which decreased 76% in June when compared to the same time in 2019. Brokers say the rental market will face the most immediate pressure since renters can leave the city easily, and few renters are moving in, according to CNBC.