StreetEasy reports that the 2022 market in Manhattan is hitting record-high rent prices.
In the first quarter (Q1) of 2022, Manhattan rent prices increased by $1,000 more per month than where the market was this time last year. In 2021, the asking rent price was $2,700 – the lowest recording on StreetEasy data.
Not only have monthly rental prices increased, but apartment hunting has become increasingly difficult. In Q1 2021, there were double the amount of available rental units available than in Q1 2022. 23,419 rentals were advertised this year, whereas 56,973 rentals the previous year.
“Renters can take this latest data as a sign to be prepared for their landlords to potentially present them a lease renewal with major increases. Having a plan for if and when that happens will be integral, whether you’re going to accept the increase or make some tradeoffs to find more affordable space,” Joshua Clark, Senior Economist at Zillow, said.
The reality of the matter is that pandemic deals have expired. During last year’s Q1, 42.8% of rentals in Manhattan advertised a concession – one year later, it is 13.1%. This has been the lowest amount of apartments offering concessions StreetEasy has recorded since 2016.
“Renters are generally in a tougher position than they normally are this time of year, but those able to take over the lease on a pandemic-deal apartment may have more luck,” Clark said. “There could be a mass exodus of renters priced out of their apartments in the coming months that could help alleviate the weaker than normal supply of rental inventory.”
In Manhattan, the asking prices rose 7.7% to $1,395,000 during the first quarter. Brooklyn reached a new high of $2,800 – up 16.9% from the previous year. Queens increased by 15.1% to $2,300. Queen’s borough has stayed relatively consistent in comparison with Manhattan and Brooklyn.
For the full report, visit StreetEasy Market Reports.