The NYC rental market is in a very different place to where it was a year ago, which is good news for landlords and less exciting news for renters. The prices of New York apartments for rent are on the rise, and so far, they’re showing no signs of slowing down. What has led to this, you ask? Let’s take a closer look.
Competition Is Fierce
A couple of years ago, scores of New Yorkers fled the city, leaving behind empty apartments and the die-hards who were prepared to brave life in a time of the pandemic. Among those who fled and those who stayed were some who questioned whether the mass exodus was a sign that the era of bustling metropolises was over.
However, the last quarter of 2021 and the first few months of this year have proved that the Big Apple’s as resilient, if not stronger, than ever. Many of those who left New York for less dense places have been vaccinated and are moving back to the city.
In January this year, the number of available apartments dropped by 83.3 percent, compared with the number of available apartments in January 2021. The number of available apartments was particularly stark in Brooklyn, where the number plummeted by 86.4 percent year-over-year.
We’re certainly seeing that when it comes to New York apartments for rent. According to Platinum Properties Leasing Manager, Fitore Abagaza, “The increase in rents is highly due to bidding wars happening due to the scarcity of inventory and the high increase in demand by having so many professionals either being returned back to work in the office full time or those who were temporarily housing out of New York coming back.”
For renters, finding an apartment with extra amenities and enough space to use as a home office can be as competitive as buying a house. Manhattan apartments for rent that meet those requirements have become scarcer and finding them is a fast-paced process that often includes bidding wars. It’s a case of low inventory and record-high rental prices.
One example of this was a one-bedroom unit on 69th Street, Upper West Side, with space, large windows, a dishwasher, and proximity to Central Park. It was listed for $3,100. In a day and a half, there were 61 inquiries, 13 showings, and eight offers. The apartment ended up being rented for $3,625 – 17 percent higher than the asking price.
A Look At The Figures
The February 2022 Elliman Report illustrates the dramatically rising prices of New York City apartments in figures. According to the report:
The average rental price in Manhattan increased by 29.4% from February 2021’s $3,791 to February 2022’s $4,906. The median rental price increased by 23.5% from $2,995 to $3,700 in the same period. The listing inventory decreased by 81.1% from 23,983 to 4,541.
The average rental price in Brooklyn increased by 5.8% from February 2021’s $3,125 to February 2022’s $3,306. The median rental price increased by 10.5% from $2,625 to $2,900 in the same period. The listing inventory decreased by 85% from 19,965 to 3,004.
The average price of apartments for rent in New York City’s Northwest Queens increased by 14.1% from February 2021’s $2,695 to February 2022’s $3,074. The median rental price increased by 14.5% from $2,522 to $$2,888 in the same period. The listing inventory decreased by 89.3% from 4,816 to 517.
20% Higher Rents Than Pre-Pandemic
Our leasing manager revealed, “Our own exclusive landlords are able to achieve 40%-60% higher rent than they were during the 2020 pandemic rental prices and 20% higher rents than pre-pandemic.”
Whether you’re looking at renting Tribeca apartments, or checking out rentals across other Manhattan and Brooklyn neighborhoods, Platinum Properties can help you find your dream rental.
