NYC’s record-breaking rents squeeze tenants across boroughs
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NEW York apartment hunters are facing higher rents than ever before and having a hard time finding bargains anywhere.
The median rents on new leases in Manhattan, Brooklyn and northwest Queens reached records in April as confident landlords pushed up prices and cut down on incentives, according to a report by appraiser Miller Samuel and brokerage Douglas Elliman Real Estate.
In Manhattan, the median rent hit US$4,241, 8.1 per cent higher than a year ago and US$66 more than the previous record set in March, the data show.
The Brooklyn median of US$3,500 was up almost 15 per cent from last year, while the median in the section of Queens that includes Astoria and Long Island City rose nearly 13 per cent from a year earlier to US$3,525.
“There’s a lot of demand and it’s not just for one type of apartment,” said Jonathan Miller, president of Miller Samuel. “This is an equal-opportunity pain-maker for tenants.”
Prices were up from a year earlier across almost every category in the three boroughs. The median luxury rent in Manhattan increased 13 per cent to US$11,310. The median price for studios in Brooklyn rose by 8.5 per cent, while the cost for a three-bedroom apartment surged 47 per cent. In northwest Queens, the median rent for existing apartments was US$3,200, up 19 per cent.
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The pricing on new leases is so unattractive that many renters appear to be staying put rather than looking for a new spot. The 3,869 Manhattan leases signed in April reflected a 20 per cent drop from March – traditionally a less active month.
“Occupants are renewing instead of trying their luck elsewhere because they realise the market is not going to get more affordable in the immediate future,” Miller said. “They’re staying put and that’s just enhancing the ability of landlords to keep their rents elevated.”
With the rental market’s busiest months – usually July and August – yet to come, the same dynamic may continue to play out for a while. The number of apartments for rent in Manhattan has been on the rise for several months, climbing 38 per cent in April from a year ago. But inventory is still relatively scarce, about 10 per cent below the average for the month over the past decade. BLOOMBERG
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