New York rents are surging even as rest of US sees relief

Published Thu, Feb 29, 2024 · 07:22 AM

RENTS are cooling in most United States cities. In New York, they are up double digits.

One-bedroom rentals in New York – the nation’s most expensive city to rent in – surged 18 per cent in February compared to last year, to US$4,200, according to a new report by rental site Zumper. Jersey City, located across the Hudson River from Manhattan, also saw a jump, with median rents increasing 5.4 per cent to US$3,140.

Nationwide rents fell 0.7 per cent this month compared to last year, largely as a result of a construction boom in new rental units. February marked the fifth continuous month of either flat or negative year-over-year nationwide rent changes, according to the report. But in New York, where there continues to be a housing shortage, rental costs remain high.

Experts expect to see relief as mortgage rates decline and there is less competition for rental units. But for now, the increase in New York prices stands in contrast to even other high-cost cities.

Median rents for a one-bedroom in San Francisco, Los Angeles, Boston and Seattle slipped 3.3 per cent, 5.1 per cent, 5.7 per cent and 7.5 per cent, respectively, in February compared to last year.

Zumper’s report examined one and two-bedroom rentals across 100 of the US’s most populous cities. BLOOMBERG