“Rent is too damn high!” is a refrain New Yorkers will be saying ad infinitum, especially as the average rent in Manhattan reaches over $5,000 per month for the first time in history.
Real estate company Douglas Elliman released a report detailing Manhattan rentals in June 2022, not only showing that the median rent price was $4,000 per month but that the average rent hit $5,058.
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It was the highest average rental price on record, according to the agency and is a 29% increase over last year. The median rent price was up by 25% to $4,050 per month.
If you’re wondering what the difference is, median rent is the mid-point value of the total price samples while average rent is the sum of all rents divided by the number of the sample size.
It’s not all too surprising Manhattan has reached new heights. Behind that, Brooklyn’s average rent was $3,822 (up 20% year-over-year) and Northwest Queens had an average rent of $3,352 in June (a 15.1% 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.
While it’s great the NYC real estate market is back and booming, a lot of us are reeling from the surge in price across the board. Just last month, the city announced that rents on one-year leases will increase by 3.25% and by 5% on two-year leases in rent-stabilized homes. The higher prices will apply to leases that begin on or after October 1, 2022.
Ex-Brit turned Manhattan resident since 2008.