Record Average Rent in New York City Exceeds $5,000

A real estate analysis shows the average rent in Manhattan has risen to $5,058 a month — the highest in history and up 29 percent from last year.

The median price for a Manhattan rental is $4,050 a month, up 25 percent from last year.

“The rental market continued to show robust conditions, with prices rising to new records as the market share of landlord concession continued to fall,” the report issued by the Douglas Elliman real estate agency said.

The average Manhattan rent is now over $5,000 for the first time ever https://t.co/ayMOHXqdkM

— Time Out New York (@TimeOutNewYork) July 14, 2022

The Time Out website reported on the huge increases in rents, on the heels of the coronavirus pandemic that virtually shut down New York City for two years:

It’s not all too surprising Manhattan has reached new heights. Behind that, Brooklyn’s average rent was $3,822 (up 20 percent year-over-year) and Northwest Queens had an average rent of $3,352 in June (a 15.1 percent increase year-over-year).

All of this tracks — PropertyShark just released its own report about the most expensive neighborhoods to purchase an apartment in and found that 38 NYC neighborhoods surpassed the $1 million median, even as the overall NYC median decreased to $755,000.

It makes sense then that with such high sales prices would-be buyers would decide to rent instead, which is part of why rents have increased, according to cnbc.com. Families are also moving back to the city after leaving it during the pandemic and, as usual, young professionals are flocking to the city after graduation, the outlet says. All of this has led to bidding wars.

“Bidding wars accounted for 16.6 percent of new leases, up from 8 percent in the same period last year, as the average premium paid over the landlord’s latest asking price rose to 18.2 percent from 9.9 percent over the same period,” the analysis said.

Mansion Global featured another part of the analysis in its report:

The number of homes available for rent, though, were not nearly enough to meet the increasing demand. June’s rental inventory across Manhattan shrank 45.7 percent year over year to 6,433 units. Due to the supply shortage, the number of new leases signed nearly halved from last year’s level, declining 46.7 percent to 5,143, according to the report.

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