By Colin O'Leary
July 14th, 2022
The average rental price in Manhattan has soared above $5,000 for the first time ever according a June market report compiled by Douglas Elliman and Miller Samuel. The report finds that the average Manhattan rent in June was $5,058 per month, a 1.7% increase from the $4,975 average rent price recorded in May. Rental prices have soared over the past year in Manhattan, up an astonishing 29% year-over-year. The average monthly rent price in June 2021 was $3,922.
The supply of rentals in Manhattan is way down at a time when demand is increasing. In June, the report notes that Manhattan had 6,433 units available for rent, a 46% drop from the 11,853 units that were available in June of 2021.
There are several factors driving the increase in rental prices in NYC. Demand for rentals is up because more and more people are returning to the city after long absences due to the covid pandemic. Inflation and supply chain issues are also putting pressure on supply. Rising mortgage rates are not helping either, making it less affordable to purchase, which in return is causing potential buyers to continue renting for longer.