New York City Rents Have Reached Record-Breaking Highs

Rents in Brooklyn, Queens, and Manhattan have all reached record-setting highs, with rates increasing in the first quarter of 2019, according to Streeteasy. Rents in Manhattan rose 2.6 percent to $3,217, while Brooklyn rents increased 2.2 percent to $2,608. Rents in Queens jumped 2.5% to $2,173.

This winter was a harsh season for renters — unlike years past.

“We’re coming out of an unusually competitive winter rental season in which many renters found themselves in a weaker negotiating position than in years past,” said Grant Long, the Senior Economist at StreetEasy. “As would-be buyers opt to embrace renting while sale prices are falling, the competition that new grads and other transplants entering the city’s workforce would typically bring this time of year will be even more pronounced. This spring, landlords will have the upper hand, and renters should be prepared to move quickly to make sure they get a place they love.”

Landlords were less likely to offer discounts as rents increased, according to Streeteasy.

Rents only declined in North Brooklyn — because of the shutdown of the L train.

“Manhattan home prices have reached lows we haven’t seen since 2015, and inventory levels are at historic highs, leading many to believe that now may be the time to buy. But with a median price above $1 million, purchasing a home in Manhattan is still too expensive for many in this market,” said Nancy Wu, an economic data analyst at Streeteasy. “Many would-be buyers are opting for the flexibility of renting in some of the most expensive areas of the city — which in turn is creating an unusually competitive winter rental season.”

The amount of concession from landlords in Manhattan dropped 8.6 percent since last year. In Brooklyn, rental concessions dipped 10.6 percent since last year. Rental concessions in Queens decreased 5.2 percent in the last year.

StreetEasy economist Grant Long said that the city’s rising employment rate has contributed to increased rental rates.

“It’s putting more money into pockets of some folks and helping to push rents up,” Mr. Long said. “For people able to participate in that, it can work out.”

Mr. Long called the rental increases “not terribly dramatic.”

“But for some people who haven’t enjoyed the same type of wage increase, it exacerbates the affordability crisis,” he added.

New York’s buyers market continues to struggle, according to Jonathan Miller, a local real estate appraiser. He described the behavior of prospective buyers as “camping out” in the rental market.

By: Gail Monroe