In anticipation to a return to the office, Manhattan rents jumped to record heights.
Record Jump in Rent Prices in New York City
October saw a record jump in Manhattan apartment rents as workers expect a return to on-site offices.
According to the latest report from appraiser Miller Samuel and brokerage Douglas Elliman Real Estate, October’s median rent in Manhattan increased +18% in October to $3,382/month. This rent increase was the largest annual rent jump in a decade. That said, rents are still below the October 2019 median of $3,409.
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Tenants Wanted Better Digs
Many workers who were shut out of the suburban home buying market earlier in the pandemic discovered they could upgrade to better city apartment units, said Jonathan Miller, president of Miller Samuel and author of this report. Other workers decided to sign on the dotted line to secure units close to their offices for the eventuality they will return on-site.
Miller said, “There’s more people understanding the relationship of where they want to live and where their employer wants them to work from.”
Demand for Higher-End Apartments Spurred Rental Prices Across All Categories
The axiom of supply and demand played out in all rental tiers in October. Each of these new benchmarks was record-setting for annual growth. Take a look:
- Rents in buildings with doormen jumped +25% to a median of $4,263
- Non-doormen buildings saw a rent increase of +7.4%
- Studio units climbed +17%
- One-bedroom units jumped +16%
- Two-bedroom units soared +26%
Number of New Leases Plummeted
While this surge in rent prices is noteworthy, so is the drop in the number of new leases signed in October. The number of new leases signed in October dropped -22% from one year ago…a signal that the October rental market in Manhattan reverted to normal seasonal patterns.
Thanks to The New York Times.