Median rent in New York — Manhattan reached $ 4,000 in May. This is the highest price ever reported by securities firm Douglas Elliman. This was an increase of almost 2% from April and more than 25% from May 2021. The average rental price in Manhattan was just below $ 5,000 in May.
Median rents in Brooklyn also rose to $ 3,250 in May, up 18% from the previous year.
Soaring rents in New York City have been worried about residents for months after people left New York City at the beginning of the epidemic and prices plummeted. Recent rises justify more people returning to the city in recent months, high mortgage rates, and high rents for some tenants who put more value on their home space. It is promoted by the work.
At the same time, after the expiration of the New York peasant eviction moratorium, rising peasant eviction rates, coupled with a lack of affordable rent, can exacerbate the turmoil. Price thresholds reached in May suggest that rents will remain high, at least during the summer, which many realtors consider to be the peak season for renting. But in the long run, lessees can’t keep up and rates need to be leveled, brokers say.
The influx of renters into the city is a major factor in the increased demand for apartments. “I’m seeing people leaving the city come back for the first time because of a pandemic, and if you mix a lot of new hires and recent graduates looking for a place right now, this is what happens. “Keyan Sanai, a real estate agent at Douglas Elliman, said.
Rising mortgage rates have also motivated people to rent an apartment instead of buying real estate now. Jonathan Miller of appraisal firm Miller Samuel said:
Miller added that the telecommuting setting allowed him to streamline rent payments by spending more time in his place of residence. “People live where they really want to live, which can also be a driving force for paying more than they are accustomed to paying,” he said.
As a result of soaring rents, those looking for an apartment are abandoning important features or expanding their search beyond their dream neighborhood. Hull Gavsey, Executive Manager for Leasing at Douglas Elliman, said: “They are making more sacrifices. If they were looking for something with laundry in the building, they would be aware that it wasn’t happening anymore.”
“Usually people looking for NoHo don’t look at Kips Bay, people looking for Gramercy don’t look at BatteryParkCity, but people are increasingly compromising on location,” Sanai said. ..
Eventually, rents will need to fall or stagnate, Miller said. “The best thing about high home prices is high home prices,” he said. “When consumers can’t afford to pay, they go somewhere.”
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