NYC Apartment Rent Skyrockets, Hitting New Record
Taylor Swift famously sang "Welcome to New York, it's been waiting for you" but New York City has not been so welcoming lately with its exorbitant rent prices.
CNBC reports that rent in Manhattan reached a record-breaking level in July, due to higher interest rates and low supply driving up the price. The news outlet notes that according to appraisal firm Miller Samuel's market reports for real estate agency Douglas Elliman, the average monthly rent in the past month skyrocketed to $5,588, 9 percent over what it was in 2022.
The publication also pointed out that the median rent, at $4,400 per month, and the price per square footing, at $84.74, has hit a new record. It reportedly is the fourth time in five months that rent in Manhattan has broken a record.
Jonathan Miller, who is the CEO of Miller Samuel, told CNBC that Manhattan "could see another month of records" in August, as it is typically the peak rental month, with families trying to find a home before their children return to school.
Miller also opined that the combination of rising inventory and falling leases seem to indicate that Manhattan renters are "close to their tipping point." He added, "We're seeing transactions slip because of affordability."
This isn't just limited to one-bedroom apartments. CNBC mentioned that the rent increase in July was seen in all types of apartments, from studios to three bedrooms. However, as expected, larger apartments have seen the biggest rise in rent.
The publication explains that, according to brokers, Airbnb units are also affecting the number of available apartments. Additionally, new rent regulations have taken up to tens of thousands of units off the market.
"The vacancy rate is still low, making it very hard for tenants to secure an apartment," said Janna Raskopf, who works at Douglas Elliman. "Many tenants renewed their current leases and are staying put. I believe this trend will continue at least for the next couple of months."
This doesn't look good for those who are trying to move to Manhattan anytime soon, though there are other nice boroughs in New York City that are just as nice and slightly more affordable.
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