Living in New York City has become increasingly more difficult for renters in a post-COVID-19 pandemic economy. As the world begins to heal from the past 2 years of hardship, the price of rent is only going up to accommodate for lost revenue.
The rental market is stuttering with low inventory, so to make up for the lack of stock landlords are getting their revenue in a different way. They are raising the rent for their already existing tenants. New Yorkers are struggling to keep up with the change in price.
Data collected by StreetEast stated that “Tenants priced out of their homes likely accounted for more than one-third of NYC rental inventory available in Q2, as landlords looked to make back what they offered in pandemic discounts.”
NYC rental inventory rose 14% to 65,697 available units in Q2. While this looked promising for potential renters, the deals that were put in place during the height of the COVID-19 pandemic expired and now landlords are asking for new market value prices for their spaces.
StreetEasy economist Kenny Lee continued, saying that “tenants priced out of pandemic-era discounted leases generated at least a third (34%) of the available inventory in Q2 2022. […] On average, rentals that were listed in 2020 or 2021 and relisted in Q2 2022 showed a 20.4% increase in asking rents per year.”
Data reports were presented that represented the monthly median household income a tenant in each of the top 3 most popular boroughs would have to pay for the median-priced rental, it goes as follows: 60% for Brooklyn, 55% for Manhattan and 43% for Queens.
Too much of New Yorker’s income is going into their living spaces, as landlords aggressively raise prices this quarter it will become impossible for people to afford places to live in the city.
Manhattan has seen an influx in rental spaces, 33% to 31,412 in Q2 from Q1. Despite this, about 44% of these apartments are available because previous tenants were priced out of their homes due to the lack of COVID-19 pandemic era discounts.
Lee continued reporting that “Manhattan’s median asking rent soared to $4,100 by the end of Q2: the highest on StreetEasy record…”
Priced out renters are in desperate search of affordable units, so they are turning to areas like Brooklyn and Queens. Queens saw a 9% drop in available units but a 13% increase in median rent prices. Brooklyn saw a 5% rise in inventory but a 12% increase in median rent prices.
Read more at streeteasy.com.