NEW YORK CITY, New York: After prices fell during the COVID-19 pandemic, rents in Manhattan are again reaching new record highs. According to a February report from brokerage Douglas Elliman and appraisal firm Miller Samuel, the median monthly rent for a Manhattan apartment reached a record $3,700, up 24 percent from one year ago and representing an unusually high 4.2 percent increase from January. “What we are seeing is a rapid rebound and an unprecedented climb in rental prices,” said Jonathan Miller, president and CEO of Miller Samuel. “In all categories, everything is going up,” as quoted by CNN. As demand for rental apartments has increased rapidly, the “pandemic pricing” deals offered during the crisis have now been replaced by bidding wars. The amount tenants pay, after factoring in incentives from landlords, or the net-effective median rent, rose by a record 28 percent from last year to $3,630 a month. As many New York City businesses return to work in-person, therefore, boosting demand, prices are rising overall. According to Miller, in 2021 some 1 percent of new apartments leased at a rent higher than listed because of a bidding war. But in February, 18 percent of Manhattan apartments rented for more than the asking price. The inventory of rental apartments in the borough dropped 81 percent in February from the previous year, while the vacancy rate, which was above 11 percent one year ago, dropped to just 1.32 percent. “It is not an all-time record low in vacancies, but it is the lowest February since the financial crisis,” Miller noted. Hal D. Gavzie, executive manager of leasing at Douglas Elliman, said February is typically one of the quietest months for rentals, adding that many renters are facing a dilemma of whether to accept a rent increase or find a new apartment. “Renters knew, going into this, that their concessions would end. You knew you’d be able to take advantage of the deep discounts, in some cases discounts of 40 percent, 50 percent and lock in for a year or two. If that lease is coming up soon, the landlord may be offering the renewals at a 15 percent to 40 percent increase,” he said, according to CNN.
Median rent of $3,630 reported in Manhattan
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