Rents in Manhattan and other parts of New York City have reached an all-time high, according to a new report from real estate firms Douglas Elliman and Miller Samuel. The report reveals that in July, the median monthly rent in Manhattan was $4,400, marking a 6% increase compared to the previous year. This figure represents a record high for the fourth time in the past five months since tracking began in 2008. Additionally, the average rent in Manhattan now stands at $5,588, reflecting a 9.3% increase from last year. The average rent for a studio apartment is $3,278, while a one-bedroom apartment averages at $4,443.
The surge in rents comes as the city continues to recover from the impact of the COVID-19 pandemic. Brooklyn has also experienced a similar trend, with the average monthly rent reaching a new high of $4,347, indicating an 11.9% jump compared to the previous year. Rents have increased across all apartment sizes, including studios, one-bedroom, two-bedroom, and three-bedroom apartments. In Northwest Queens, the average rent has risen to $4,003, representing a significant 16.8% increase from last year.
Despite being in the peak of leasing season, all boroughs have witnessed a slowdown in new leases, which the report attributes to the record-high rents. Furthermore, apartments are staying on the market for longer periods before being rented. In Manhattan, the average time an apartment remains on the market is 35 days, while in Brooklyn it is 31 days, and in Queens, it is 46 days. This is a notable increase compared to last year when apartments in Manhattan were rented out within an average of 26 days.
The report’s findings come at a time when New York City is grappling with a deepening affordable housing crisis. The most recent New York City Housing and Vacancy Survey from May 2022 reveals that a third of households in the city spend more than half of their household income on rent. This situation is considered “rent-burdened” by the federal government, which defines families spending over 30% of their income on rent as such. Additionally, a survey sponsored by the United Way of New York City and the Fund for the City of New York, released in April, found that 35% of New Yorkers are unable to meet their basic needs, including housing, food, healthcare, and other costs.
As rents continue to rise, the affordability crisis in New York City shows no signs of abating. The city’s residents are increasingly burdened by the high cost of housing, further exacerbating the challenges faced by many in meeting their basic needs.
