Manhattan Rentals Soar

Manhattan’s rental market – much like London’s – has made a remarkable recovery since the darkest days of the pandemic; new data shows the average rental price has now breached the $5,000 per month mark for the first time in Big Apple history, reports Abode2.

Douglas Elliman recorded a 1.7% month-on-month increase in June, taking the average figure to $5,058 – or nearly $61,000 per year. The annual increase now stands at 29%.

The brokerage said a number of factors were at play, including locals returning to the city in the wake of the pandemic, and would-be buyers turning to renting as interest rates continue to rise.

All this has led to heightened competition for apartments, while the number of listings (6,433 units) available for rent last month was nearly 46% down on the total in June 2021.

The most expensive listing on the rental market in the city right now is a penthouse at One57, asking $150,000 per month.

In Prime London, a lack of stock has led to a “collapse” in activity levels in recent weeks.

According to LonRes, most measures (including new lets and new instructions) are running nearly 50% below pre-pHandemic levels, while the average time to let a property has nearly halved over the last year (from 87 days in June 2021 to just 44 days in June 2022).

LonRes is expecting rents to rise further as the stock-starved market gears up for the traditionally busy autumn season.