The Limited Times

Now you can see non-English news...

Median rent in Manhattan jumps to a record $5,000 a month

2022-07-14T12:44:18.479Z


It's the first time median rental prices have exceeded $5,000 a month in Manhattan, and they could go even higher.


4 million Americans will not be able to buy a house 1:08

(CNN) --

Rents continue to skyrocket, hitting new all-time highs in Manhattan last month.

The median monthly rent paid by a Manhattan condo renter rose to $4,050 in June, up almost 25% from a year ago and setting a new record for the fifth month in a row, according to a report by brokerage firm Douglas Elliman. and Miller Samuel Real Estate Appraisers and Consultants.

Median rent — which is the midpoint of all rents — topped $4,000 a month for the first time in May.

Median monthly rent — which is the sum of all rentals divided by the number of rentals included in the data — was even higher: $5,058 in June.

This represents an increase of almost 30% compared to a year ago and it is the first time that the average exceeds US $ 5,000 per month.

Rents have risen, in part, because would-be homebuyers have decided to stop looking and rent, said Jonathan Miller, president and CEO of Miller Samuel.

  • Home prices and rents break records in the US.

"There are more people who are switching, who were about to buy a house, but now, with mortgage rates going up, they're in the rental market," Miller said.

"The market is already tight. This makes it tighter."

advertising

Those tenants tend to have more money to spend and often need a larger and more expensive family apartment, which makes the average higher.

The median price for a three-bedroom apartment in June was $9,469 a month, up from $7,394 a year ago.

Meanwhile, the median price for a one-bedroom apartment was still below $5,000, at $4,278 on average, down from $3,475 a year ago.

And little relief is expected for renters in the short term, Miller said.

"New leasing activity in Manhattan doesn't peak until the end of the summer," Miller said.

"Barring a recession, we expect a seasonal increase in demand, which will put further upward pressure on rents."

  • Inflation shoots up and reaches 9.1% year-on-year in the United States, driven by the record price of gasoline

Both median and median rental prices have more than made up for losses during the pandemic, according to Miller, with median rentals in June up 14% from June 2019 and median rentals it was up 19% from pre-pandemic levels.

New leases grew in June for the fifth consecutive month and the vacancy rate remained below 2% for the seventh consecutive month.

A year ago, the vacancy rate was close to 7%.

The sweeteners that landlords offered tenants to keep New York apartments for themselves when the market crashed during the pandemic are now in short supply, the report found.

Concessions were only offered in 15% of new deals, down from 34% a year ago.

Bidding wars increased for the fourth consecutive month, especially in the luxury market.

How long will prices continue to rise?

"Nothing goes up forever, but in the short term we are poised for more gains," Miller said.

Looking ahead to the fall and next year, he said there will be an affordability threshold that renters will meet.

But even then, prices are more likely to level off than fall.

"The way things are now, I'm not sure what's driving rents down," he said.

"But a recession is the asterisk in the conversation. The Fed is giving the economy a baseball bat and more rate hikes are on the cards. There is still a lot of uncertainty."

rent of houses

Source: cnnespanol

All news articles on 2022-07-14

You may like

Trends 24h

News/Politics 2024-03-27T16:45:54.081Z
News/Politics 2024-03-28T06:04:53.137Z

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.