The price of rent in Manhattan has increased for the sixth month in a row, reaching a new all-time high.
According to a monthly survey compiled by the brokerage company Douglas Elliman and Miller Samuel Real Estate Appraisers and Consultants, the median rent for an apartment in Manhattan increased to $4,150 per month in July, reflecting a rise of 29 percent when compared to the same month one year prior. Since June, it has increased by 2.5 percent.
The average monthly rental payment, which had already exceeded the threshold of $5,000 a month in June, reached a new all-time high of $5,113 a month.
Doorman’s median rent reached a new high for the seventh consecutive month. Non-doorman median rent rose to a new record for the fourth consecutive month, according to the survey.
“Luxury net effective median rent increased year over year for the fifteenth consecutive month and surged year over year to the second-highest on record. The market share of bidding wars accounted for one out of four new luxury leases”, the Miller Samuel analysis says.
The rent would increase even more
It is anticipated that rentals would increase even more in August, the final month of the yearly peak rental season, according to Jonathan Miller, president and CEO of Miller Samuel, who spoke with CNN.
“It will continue, at a bare minimum through next month, because more demand is anticipated putting upward pressure on prices. While the rental market in Manhattan may cool, apartments aren’t expected to become much more affordable.” he said.
The only way Miller sees rents easing is in his least-desirable scenario — a recession that threatens to cause job losses. And a recession could occur if the Fed’s interest rate hikes in an effort to curb inflation do more harm than good to the economy.
In the event of widespread layoffs, demand for Manhattan apartments may fall as residents double up or leave the city, easing upward pressure on rents.
Miller, though, predicts that tenants will continue to face price increases until the end of the year, but at a slower rate than in recent months.
