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By: Hadassa Kalatizadeh
Paying rent for a Manhattan pad, is more expensive than ever before.
As reported by the NY Post, the Big Apple has entered the peak rental season with a bang. The average apartment rental price for Manhattan in April was $4,241 for the month, up 1.6% since March’s $4,175 median price. The previous record high of $4,150 from last July was blown away with record-breaking levels for two consecutive months. April’s rental prices are 8.1% higher than the same time last year, as per a market report conducted jointly by real estate brokerage Douglas Elliman and appraiser Miller Samuel. For studio apartments, in Manhattan, rental prices soared 13.5 percent in April, to a median price of $3,235, making it the steepest jump since last year. Rental prices for a one-bedroom apartment in Manhattan increased 5%, for an average monthly price of $4,200. Two-bedroom apartments in Manhattan saw rents jump 11 percent over 2022, reaching a median rent of $5,500. Even as rents were up, concession became more rare, dropping to their lowest level since November 2019, per the report. Incentives, such as free months, were only offered by landlords in 12.9% of leases — compared to 15.7% last year.
Other boroughs of NYC also saw an increase in rental prices, and in Brooklyn and Queens rental prices jumped even more, beating the previous year rental prices by 14.8% and 12.8% respectively, per the report. Northwest Queens saw a notable jump in median rental prices for the month, jumping 6.8% compared to March, reaching $3,525. Despite the steep jumps, prices there are still more modest than Manhattan—also making them more sought after. In Brooklyn, apartments for rent stayed on the market for an average of just 15 days.
Jonathan Miller, CEO of Miller Samuel, told The Post that the record-high rents for the second month in a row, in addition to the “roughly 20% month-over-month drop in new leases” suggests that “tenants are perhaps throwing their hands up and renewing because options are limited for equivalent amenities.” The report added that the rental season usually doesn’t peak till the end of the summer, so despite the skyrocketing market, prices have “the potential” to continue upwards “despite rising inventory.” A decline in rental prices would be “contingent on an economic event, like a recession, with notable job loss,” Mr. Miller added. If we don’t see such a downturn, “it’s reasonable that we may see additional records over the next four months,” for the rental market, Miller said.
Per the Post, in Manhattan, the boost in rental prices is leading to an expanded inventory listing, with landlords eager to cash in on the higher rental prices, leading the available inventory to increase annually for the sixth time. Even with the higher prices, Manhattan apartments only stayed on the market for an average of 20 days in April — marking an improvement over the 39 days on the market reported for March.
