Manhattan's average rent soared to record $5,588 in July
NEW YORK -- New Yorkers are feeling the squeeze as rents hit a new high.
Rent in Manhattan soared to a record-high average of $5,588 in July, up 9% from 2022.
It's hurting tenants struggling to find apartments they can afford. One apartment hunter said she can't find a studio to suit her work-from-home needs for less than $5,000.
"I am considering not coming back to Manhattan," she said.
Connor Leydon and his two friends who just moved to the city for work have been searching for an apartment since June.
"We knew it was gonna be small and we knew it was going to be expensive and that has definitely proven to be the case," said Leydon.
According to a report by Miller Samuel and Douglas Elliman:
- an average studio apartment is $3,278, up 2.7% from last year
- an average one-bedroom is $4,443, up 3.9% from last year
- an average two-bedroom is $6,084, up 4.7% from last year
"I think it's exorbitant," said Isaac Casey, who lives in Brooklyn.
"I definitely feel the squeeze," said Connor Childers, who lives in Tribeca.
Keyan Sanai, a real estate broker with Douglas Elliman, said it's hard to even find a discount in the outer boroughs these days.
"Rent went up at 9.3% in Manhattan. We saw it go up 14% in Brooklyn because now Brooklyn landlords are saying these people from Manhattan can't afford it, how much can I raise my rent?" said Sanai.
Experts said there are several contributing factors, including low occupancy, lack of new development and inflation. Plus, higher interest rates are forcing would-be buyers to rent.
"We're in a standstill because everyone doesn't know where the economy is going," said Andrew Lieb, a housing attorney. "As interest rates get lower, there's going to be better borrowing power."
Sanai said they're starting to see the volume of requests slow down because prices are so high.
"In July last year, we saw more leases signed at a lower number. This year we're seeing less leases signed at a higher number," said Sanai.
Renters might see a bit of relief in the form of apartments offering one month free concessions, Sanai said.