According to a new market analysis put together by Douglas Elliman and Miller Samuel, the average rental price in Manhattan has surpassed $5,000 for the first time in the city’s history. The New York Post reports that in Manhattan, the average cost of rent is $5,058 per month, which on its own would cost a city resident close to $61,000 per year. This amount represents a 29% increase over the average cost of $3,922 reported in June 2021 as well as a 1.7% month-over-month increase from the $4,975 average rent observed in May.
The data released by Elliman and Miller Samuel last month revealed that Manhattan’s median rent surpassed $4,000 for the first time in May, increasing by 25.2% year over year from the median of $3,195 in May of the previous year. The median rent is the average of all pricing samples. The average rent is calculated by dividing the total sample size by the number of rentals.
Rents have increased steadily since the beginning of 2022 for several reasons, the continuous record-high inflation rates and locals returning to the city from their COVID hideouts. Additionally, out-of-towners who work remotely full-time started relocating to New York. Elliman also noted that with rising mortgage rates, prospective purchasers are choosing to rent instead of buy, putting even more pressure on an already limited market that has recently been characterized by bidding wars to acquire leases for a limited number of apartments.
In June, Manhattan had 6,433 rental units available, which is an increase of 11.4% over the 5,776 listed in May but a decrease of over 46% from the 11,853 available in June of the previous year. The most expensive property in the city, according to listing website StreetEasy, is a roughly 6,240 square foot penthouse at One57 on Billionaires’ Row in midtown that was listed for $150,000 by Deborah Kern of the Corcoran Group. It has views of the Hudson and East rivers as well as Central Park and is located in the heart of the financial district. The least costly option is a one-bedroom apartment in Inwood close to an A train stop for $1,300 a month.
The report also included available apartments in Brooklyn and Queens. A total of 10,271 units were listed in June across all three boroughs, compared to 26,256 in June 2021. The Bronx and Staten Island figures were not included.