Rents in Manhattan and other parts of New York City have hit all-time highs, yet again, according to a recent report from real estate firms Douglas Elliman and Miller Samuel. The median monthly rent in Manhattan reached $4,400 in July, marking a 6% increase compared to the previous year and setting a record high for the fourth time in the past five months. Meanwhile, the average rent in the borough climbed to $5,588, reflecting a notable 9.3% surge from last year.
The report also revealed that average studio apartments in Manhattan now command a monthly rent of $3,278, while the average one-bedroom apartment costs $4,443. This surge in rents can be attributed to the city’s ongoing recovery from the COVID-19 pandemic, as demand for housing continues to rise.
Brooklyn also witnessed a significant increase in rental prices, with the average monthly rent reaching a new high of $4,347. This represents an 11.9% jump compared to the previous year, affecting apartments of all sizes ranging from studios to one, two, and three-bedroom units. Additionally, Northwest Queens experienced a similar surge, with the average rent soaring to $4,003, marking a substantial 16.8% increase from last year.
Despite the soaring rents, the report noted a slowdown in new lease signings across all boroughs, despite being in the peak leasing season. This is likely due to the record-high rental prices, as potential tenants hesitate to commit to such steep costs. The prolonging leasing process is also evident, with apartments staying on the market for longer periods before being rented. On average, apartments in Manhattan now spend 35 days on the market, while the figures for Brooklyn and Queens are 31 and 46 days, respectively. Last year, Manhattan apartments had an average market time of just 26 days.
These findings from the report come at a time when New York City is grappling with a worsening affordable housing crisis. The latest New York City Housing and Vacancy Survey from May 2022 revealed that a third of households in the city spend over half their household income on rent. The federal government considers families spending more than 30% of their income on rent to be “rent-burdened,” highlighting the severity of the situation.
Furthermore, a separate survey conducted by the United Way of New York City and the Fund for the City of New York found that 35% of New Yorkers are struggling to meet their basic needs, including housing, food, healthcare, and other expenses. These figures emphasize the urgent need for comprehensive measures to address the escalating affordability crisis in the city.
As rental prices reach unprecedented levels in Manhattan and other areas of New York City, it is evident that immediate action must be taken to ensure housing remains affordable for all residents.