The average rental price in Manhattan has topped $5,000 for the first time in Big Apple history, jaw-dropping research shows June marke...
The average rental price in Manhattan has topped $5,000 for the first time in Big Apple history, jaw-dropping research shows June market report compiled by Douglas Elliman and Miller Samuel.
Specifically, the study found an average Manhattan rent of $5,058 per month, which alone would cost a tenant in the city nearly $61,000 per year. The figure marks a 1.7% rise month-over-month from May’s average rent of $4,975, as well as a 29% year-over-year peak from the average of $3,922 seen in June 2021.
Last month, Elliman and Miller Samuel revealed that Manhattan the median rent reached $4,000 for the first time ever in May, a 25.2% year-over-year jump from the median of $3,195 in the previous May.
The median rent is the median value of the total price samples. The average rent is the sum of all rents divided by the sample size number.
Since the end of 2021, rents have increased for various factors, one of which includes current record inflation rate. Residents also began returning to the city from their COVID havens, first as schools reopened and later as businesses implemented hybrid office-home arrangements. Foreigners working full-time remotely have also started moving to New York to take advantage of its geographic flexibility.
Elliman also added that with an increase of mortgage ratespotential buyers have turned to rentals, adding even more pressure to an already tight market, which has recently been marked by bidding wars to obtain leases for a limited number of units.
In June, Manhattan had 6,433 units available for rent, up 11.4% from the 5,776 listed in May, but down nearly 46% from the 11,853 available last June. Among them, listing portal StreetEasy shows, the most expensive in town: a roughly 6,240-square-foot penthouse at One57 on Billionaires’ Row in downtown listed by Corcoran Group’s Deborah Kern for $150,000, with front seat views of the Hudson and East Rivers, as well as Central Park. As for the cheapest, $1,300 per month for a bedroom near an A station in downtown Inwood.
The report also tracks statistics in Brooklyn and northwest Queens; between the three areas, a total of 10,271 units were listed in June. In June 2021, they were 26,256. Figures for the Bronx and Staten Island are not included.
For its part, Brooklyn saw an average rent of $3,822, up 20% from $3,185 last June. Its median, meanwhile, hit $3,300, up 22% year-over-year. Northwest Queens, which includes Astoria, recorded an average rent of $3,352 in June, up 15.1% from last June’s average of $2,913. The median for this region hit $3,002 in June, up 11.2% from last June.
Anna Finkelstein, 24, graduated from Columbia University’s doctoral program in physical therapy in May – and last month she looked for a two-bedroom apartment or a flexible one-bedroom apartment to share with her friend from 25 years. Abby Alden, with help from BOND New York saleswoman Ekaterina Vorobeva.
“Even in the last three weeks, I think I’ve seen close to 25 to 30 apartments — I’ll go and see five a day,” said Finkelstein, who added that she and Alden had been looking in the mid-east, the Midwest, Upper East Side, and Upper West Side with a monthly budget of $4,000 between them.
“We have a pretty wide range of neighborhoods,” she later added, “but that didn’t make our search any easier. It means I run more.
Finkelstein saw a Manhattan apartment with the entire floor tilted at an angle. Another apartment had its bedrooms in the basement. At an open house, attendees were told whoever posted the deposit first got the apartment. Another open house saw 30 people queuing for a total of 90 minutes, down the stairs and around the corner.
“When that happens, you don’t even apply,” Finkelstein said. “You’re like, no way.”
Although Finkelstein can stay with his family for the time being and Alden is subletting, they hope things can calm down – and they can sign a lease in August.
“We just have to keep looking — and we keep reaching out to brokers in hopes of getting something early before it hits the market,” Finkelstein said.
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