NEW YORK — New Yorkers are feeling the pressure as rents hit new highs.
Rent in Manhattan rose to a record average of $5,588 in July, up 9% from 2022.
It hurts renters struggling to find apartments they can afford. An apartment hunter said she can’t find a studio that fits her work-from-home needs for less than $5,000.
“I’m considering not returning to Manhattan,” she said.
Connor Leydon and his two friends who just moved to the city for work have been looking for an apartment since June.
“We knew it was going to be small and we knew it was going to be expensive and it certainly has,” said Leydon.
According to a report by Miller Samuel and Douglas Elliman:
- an average studio apartment costs $3,278, up 2.7% from last year
- a one-bedroom average is $4,443, up 3.9% from last year
- a two-bedroom average is $6,084, up 4.7% from last year
“I think it’s exorbitant,” says Isaac Casey, who lives in Brooklyn.
“I definitely feel the pressure,” says Connor Childers, who lives in Tribeca.
Keyan Sanai, a real estate agent with Douglas Elliman, said it’s hard to even find a discount in the suburbs these days.
“Rent went up 9.3% in Manhattan. We saw it go up 14% in Brooklyn, because with Brooklyn landlords saying these Manhattan people 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 developments and inflation. Moreover, the higher interest rates force potential buyers to rent.
“We’re at a standstill because not everyone knows where the economy is going,” said Andrew Lieb, a housing attorney. “As interest rates get lower, there will be more borrowing power.”
Sanai said they are starting to see requests decrease because prices are so high.
“In July last year we saw more leases signed with a lower number. This year we see fewer leases signed with a higher number,” said Sanai.
Renters could see some relief in the form of apartments offering free concessions for a month, Sanai said.