Home News Manhattan median rent hits new high of $4,000 a month

Manhattan median rent hits new high of $4,000 a month

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Median rents for apartments in Manhattan rose 25% from a year ago to $ 4,000 a month in May, according to monthly reports from securities firms Douglas Elliman and Miller Samuel real estate appraisers and consultants.

And it doesn’t look like there’s always a bailout right away. The summer months from June to August tend to be the peak period for new rental contracts, and analysts expect rents to rise further.

Jonathan Miller, President and CEO, said: CEO of Miller Samuel. “I don’t know how long this will last, because at some point math won’t work because of its affordability.”

The median rent for studios and one bedrooms was below $ 4,000, at $ 2,975 and $ 3,999, respectively, but the average price for two bedrooms was only $ 5,000, and for three bedrooms it was $ 6,498 in May. was.

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One of the factors driving up rent is the withdrawal of discounts and concessions offered by the landlord during the pandemic, such as one or two months of free rent.

According to the report, the percentage of landlord concessions fell to 15.3% in May, the lowest since September 2016.

Another additional pressure: Rising mortgage rates Hundreds of dollars have been added to monthly mortgage payments, forcing many prospective buyers to stay in the rental market, Miller said.

“At this point, buyers are being pushed into the rent market because they aren’t qualified or can’t afford to buy,” Miller said.

This will increase the number of lessees signing new leases for several months, creating a competitive environment in which one in five lessees participates in the bidding war and ultimately pays higher than the listed price. Mr. Miller said.

The lessee paid an average of 11% of the landlord’s asking price in May. This is the amount that has risen in the months since Miller tracked it.

What about my monthly mortgage payments?

Apartment inventories have increased since April, but have fallen by nearly 70% from a year ago. Manhattan’s vacancy rate remains less than 2%, and Miller said it is at the bottom of the normal range. All surplus inventories during the pandemic have been exhausted since the peak vacancy rate reached 11.79% in February 2021.

And prices are jumping above pre-pandemic levels. The median rent of $ 4,000 is 14.3% higher than in May 2019.

“Rents fell 20% in 2020, then recovered equally in 2021 and are now above pre-pandemic prices in 2022,” Miller said.

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