Manhattan apartment rents rise to highest level since July
The median rent on new leases increased 2.4% from a year earlier to US$4,295, the first annual gain since April
MANHATTAN apartment rents climbed in October to the highest level in three months, rising to prices normally seen during the market’s busier months.
The median rent on new leases increased 2.4 per cent from a year earlier to US$4,295, the first annual gain since April, brokerage Douglas Elliman Real Estate and appraiser Miller Samuel reported on Thursday (Nov 14).
Prices increased even more in other boroughs. In Brooklyn, new leases were signed last month at a median of US$3,600, up 3.2 per cent from a year earlier. In northwest Queens, an area that includes Long Island City and Astoria, the median jumped 4.8 per cent to US$3,350.
Rents had previously eased partly because lower mortgage rates in September lured some renters into the for-sale housing market. But borrowing costs surged in October and are now above 7 per cent by one measure. That’s kept pressure on rents, according to Jonathan Miller, president of Miller Samuel.
“Rents tend to follow mortgage rates,” Miller said. “The higher the mortgage rate, the higher rent.”
Would-be homebuyers, discouraged by higher rates, are keeping the rental market active, according to Miller. New lease signings in Manhattan surged about 24 per cent in October from a year earlier.
A NEWSLETTER FOR YOU
Tuesday, 12 pm
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Miller said renters shouldn’t expect price relief any time soon.
“Mortgage rates still aren’t coming down,” Miller said. “Economic policy would not seem to suggest that mortgage rates will fall significantly. If anything, rents will stay where they are, or rise, moving forward.”
Renters are expected to see some costs ease after the New York City Council passed a Bill that would require landlords who hire real estate agents to pay the agents’ fees themselves instead of passing them on to tenants.
While some critics have warned that landlords may end up pushing rents higher to compensate for that cost, the measure’s supporters argue that it would help renters find cheaper housing without facing major upfront costs. BLOOMBERG
Share with us your feedback on BT's products and services
