New York rents at record high as US property markets soar

Double-digit annual rent increases have been recorded in more than half of US cities

The Manhattan skyline. New York's apartment market has become super competitive as rent prices set records and vacancies stay low. Bloomberg
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Property rents are soaring across the US and have reached record highs in New York — the priciest city in the country.

The median one-bedroom rent throughout the city is up 39.9 per cent on the year, according to the Zumper National Rent Report, while the two-bedroom median is up 46.7 per cent.

The US has seen inflation reach a 40-year high this summer, although it has started to cool, with the consumer price index up 8.5 per cent year on year in July, down from a 9.1 per cent rise in June, the US Labour Department reported.

“Much of the national conversation about inflation has focused on groceries and gas — everyday purchases impacting nearly every American,” the Zumper report said.

“But people looking for a new home are suffering from the biggest sticker shock.”

Zumper’s data shows double-digit year annual increases in more than half of US cities, with several cities posting a rise of 30 per cent or more.

Only two cities registered a yearly decline in one-bedroom rent — Des Moines and Cleveland.

“Current asking rents are simply out of reach for many Americans, especially young people,” said Zumper chief executive Anthemos Georgiades.

Many renters are turning to short-term rentals to fill a temporary gap in housing, especially if they can't afford deposits and move-in fees, he said.

Within New York, there is no peak in sight as people relocate to the city in greater numbers than in pre-pandemic times, according to Zumper.

It said New York's median one-bedroom monthly rent of $3,930 is a record high for any city in the US and represents a 4 per cent monthly increase.

“Renters looking for a new home are experiencing the most competitive market in modern history, with bidding wars and sight-unseen lease signings becoming the norm,” the report said.

The median monthly rent for a one-bedroom property in the Brooklyn area has jumped 45 per cent annually to $3,927, while Manhattan recorded a 27 per cent year-on-year rise in median rent for a one-bedroom property.

US Federal Reserve Chairman Jerome Powell last week warned that the US economy would need tight monetary policy “for some time” to beat record-high inflation, and that American households and businesses will feel “some pain”.

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Updated: August 30, 2022, 12:56 PM
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