Average Monthly Rent in Manhattan Surpasses $5,000

For the first time in history, the average monthly rent in Manhattan exceeded $5,000, and brokers predict that demand and prices will continue to rise through the fall. According to a survey by Miller Samuel and Douglas Elliman, the average apartment rent in June was $5,058, the most on record. The median rent increased by 25% to $4,050 per month, while average rental costs increased by 29% over the previous year.

CNBC reports that the price hikes may drive away many potential tenants in addition to contributing to larger inflationary pressures. The government’s consumer price index includes rent as a major component, and New York is the country’s largest rental market. In June, the CPI jumped 9.1% from a year earlier. The Federal Reserve may face increased pressure to hike interest rates to contain prices as a result of the ongoing rise in prices on Manhattan rentals.

CEO of Miller Samuel Jonathan Miller believes high mortgage rates and a potential housing downturn are leading would-be home buyers into the rental market. He stated, “There are no signs of a slowdown, at least not yet,”

The availability of Manhattan apartments for rent, which grew dramatically during the pandemic, is currently very close to a record low. With around 6,400 units available at the end of June. The vacancy rate currently sits at about 1.9%, a 46% decrease from the previous year. Brokers claim that despite worries about high crime, high taxes, and troublesome subways, many families and tenants who fled the city during the epidemic are now returning. Additionally, they say that younger tenants are flooding the rental market to take advantage of the city’s culture and nightlife. Millennials and some members of Gen Z are moving to the city after graduation or working remotely from high-rise apartments.

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