If you see a 300-person line in NYC these days, it’s probably because there’s an open house.
Manhattan apartment rents hit a record for the sixth straight month in July, clocking in at a median of $4,050, according to a report from Miller Samuel Inc. and Douglas Elliman Real Estate. That’s a 25% jump from a year earlier.
But why? The Yankees aren’t even good anymore. Well, people are still clamoring to live in NYC, the summer is peak rental season, and landlords are jacking up prices to recoup the “Covid deals” they offered tenants back when everyone expected the pandemic to reduce NYC to rubble.
But as much as New Yorkers want to make this story all about New York, it’s not—rental costs across the US are climbing at their fastest pace in 30+ years.
There are many factors driving rents higher, but for one, consider this number: 5.22%. That’s the rate for a 30-year fixed-rate mortgage, up from 2.87% this time last year. People who are being priced out of the homebuying market are eyeing rentals, boosting already high demand for a thin supply of properties.
Bottom line: Post-Covid rent hikes have put city living out of reach for many. More than one-third of NYC rental inventory in Q2 likely came from tenants who couldn’t afford the new rent, StreetEasy said.