Manhattan rents hit highest-ever December record as supply plummets

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The common price of Manhattan house leases surged to the best ever for a December, with landlords demanding double-digit lease will increase amid sharply dwindling supply.

The median rental worth for Manhattan properties, together with reductions, hit $3,392 final month — the best for a December in additional than a decade of record maintaining and up 21% from the year-earlier December, according to a market report compiled by brokerage agency Douglas Elliman and appraiser Miller Samuel.

Median rents for doorman buildings – a proxy for luxurious residences, was $4,298, an annual enhance of almost 23%. By comparability, non-doorman buildings noticed rents enhance about 8% to $2,695.

Studio house items noticed the most important bounce, with the median rental worth leaping 22% to $2,550 for December.

Apartments situated in downtown Manhattan had been most costly, with a median worth that rose 28% to $4,095 for the month.

A yellow cab whizzes by an apartment building in Manhattan
Median rents for doorman buildings – a proxy for luxurious residences, was $4,298, an annual enhance of almost 23%.
Getty Images

The numbers marked a stark distinction in comparison with December 2020, when surging COVID-19 caseloads stoked concern of a mass exodus from New York City. The emptiness charge dropped to simply 1.7%, down from almost 11% one yr earlier.

“What started as a trickle earlier last year has become like a geyser of demand,” Douglas Elliman rental dealer Janna Raskopf told CNBC. “I’ve been doing this for 14 years and it’s absolutely unprecedented.”

Listing stock plunged 81% year-over-year in December, with lower than 4,800 residences listed as out there for lease.

Night view of weathered brick facade of walk-up residential building in New York City with rusty fire escape and old sash windows
The median rental worth for Manhattan properties, together with reductions, hit $3,392 final month — the best for a December in additional than a decade.
Getty Images

The lack of obtainable stock appeared to influence the variety of new leases, which fell almost 40% to simply 3,345 for the month. A surge of COVID-19 infections pushed by the Omicron variant additionally seemingly affected the numbers.

“The market is coming off of unsustainable activity levels and trending toward more sustainable patterns in the coming months,” Jonathan Miller, CEO of Miller Samuel, told Bloomberg. “Omicron is in the mix for sure, just slowing down activity too.” 

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