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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