The average apartment rent in June was $5,058, the highest on record, according to a report from Miller Samuel and Douglas Elliman. Average rental prices were up 29% over last year, while median rent was up by 25% to $4,050 a month.
Aside from pricing out many renters, the increases could have knock-on effects amid broader inflation pressures. Rents are a key component of the government’s consumer price index, which increased 9.1% from a year ago in June, and New York is the nation’s largest rental market.
“There are no signs of a slowdown, at least not yet,” said Jonathan Miller, CEO of Miller Samuel.
At the same time, the supply of Manhattan apartments available for rent, which ballooned during the pandemic, is now near record lows. The vacancy rate at the end of June was just 1.9%, with about 6,400 apartments available — down 46% from last year.
Brokers say many families and renters who left the city during the pandemic are now returning, despite concerns about high crime, taxes and troubled subways. Younger renters are also pouring into the rental market. Millennials and even some members of the Gen Z demographic are coming to the city after college or working remotely from high-rise rentals to take advantage of the city’s culture and nightlife.
“At the end of the day, they want to be in New York,” said Valirjana Gashi, a broker at Serhant. “Even some of the families that went to Miami are coming back.”
Bidding wars are now routine for rentals. Gashi said one of her clients is looking at a one-bedroom downtown that’s listed at $6,000 a month — up from $5,000 a month last year. The client is offering $6,750 to try and stave off rival bidders.
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