Living in the Big Apple is not for the financially faint of heart, as new data from Miller Samuel and Douglas Elliman recorded the average monthly Manhattan rent in July was $5,588, up 9% year-over-year and a new record.
Manhattan’s median rent also set a new record at $4,400 per month, and another peak was reached with the $84.74 price per square foot. Compared to pre-pandemic 2019, average rents in Manhattan are 30% higher – and July’s records might be broken in August.
Despite a loss in population during the pandemic, average rents in Manhattan are now up 30% compared to 2019. Jonathan Miller, CEO of Miller Samuel, the appraisal and research firm, said August rents could mark a new record because it is typically the peak rental month as families look to move before the start of the school year.
“We could see another month of records,” said Jonathan Miller, CEO of Miller Samuel, in a CNBC interview.
Curiously, Manhattan’s rising rents come at a time when the borough’s population declined by 400,000 between June 2020 and June 2022, according to U.S. Census data. But Miller noted that low inventory is driving the higher rents, pointing out that the number of apartment listings are below the historical average. But, he added, this situation could abate as the inventory of apartments for rent rose by 11% in July.
“It looks like rents are probably close to the tipping point,” Miller said. “We’re seeing transactions slip because of affordability.”