New York’s rent has increased to an all-time high, the third time in four months.
As the market moves closer to its summer peak, median rents in both Manhattan and Brooklyn established all-time highs in July.
According to the article by Mansion Global, for the third time in four months, New York rent increase reached an all-time high in July. In July, the New York rent increase by about $100 over June’s median rent, or 6% annually, to $4,400. Manhattan’s central areas had the highest New York rent increase, up 7.6% from the previous year to $4,950.
Even when contrasted to the extreme conditions encountered last year, this New York rent increase season has been exceptionally active for the New York City rental market because many leases are scheduled to expire during the summer and the last of the “Covid deals” is coming to an end.
Even then, New York rent increase had new leases plunged both annually and monthly, falling 6% since last July and 3.2% since June, despite being close to the summer peak.
According to brokers, the lack of available flats due to high interest rates has led many prospective purchasers to rent.
From the article posted by New York Post, because of the lack of apartments available, people now have been forced to rent.
Despite Manhattan’s population reducing by 400,000 between June 2020 and June 2022 due to the pandemic-induced flight, because of New York rent increase, landlords are charging 30% more than they did in 2019. The New York rent increase in Manhattan’s luxury market—the top 10% of the rental market—rose to $12,495 in July, the second-highest amount ever. Similar to the general market, new luxury leases declined as well, falling 2.7% from June and 5.6% annually. The luxury New York rent increase was exactly double that amount at $7,900, up 9.7% from the previous year. For the fourth straight month, Brooklyn, across the river, saw its New York rent increase set a record, rising by 16.2% annually to $3,950.
Despite New York rent increase, there is still a segment of tenants—some of whom have opted to postpone buying a home—who are ready to pay for quality goods.