NYC Rental Market Update May 2022
Here’s a quick snapshot of the NYC rental market for May 2022, with a focus on Manhattan and Brooklyn. You can view stats from the previous month here.
Note that the areas for “best deals” are determined by a combination of vacancy rates and/or areas with price declines (or lowest price increases, in the event of a rising market) across the most categories of apartment types. Keep in mind that “best deals” doesn’t necessarily mean “cheapest.” It just means the place where you’re more likely to have some bargaining power.
Lease signings in Manhattan finally posted year over year gains. Prices also saw year over year gains, with the median once again reaching a record high. But a lot of the high prices that we’re seeing in the borough are being driven by higher end rentals. It may be nuts out there, but don’t get too discouraged!
Brooklyn, interestingly, saw signed leases decrease. Although it likely wasn’t due to lack of demand (given how quickly properties are moving). But instead simply due to there not being enough inventory. Additionally, more renters chose to stay put rather than venture out for a new spot.
With the Federal Reserve having increased rates higher than expected, renters may end up facing even more competition in the coming months.
Because the higher cost of borrowing is likely to cause some would-be buyers to stay on the sidelines. And this means demand for rentals may be higher than normal due to them either 1) remaining in their current rentals or 2) seeking out new rentals in lieu of a place to buy.
Compounding the situation is the fact that inventory is still low and we’ve so far only seen modest increases in new listings. Again, that could change as we really hit “peak” season in the summer. Figures from June will be quite instructive. So stay tuned!
What to Expect as a Renter
You should expect to continue to have to duke it out with other renters, especially for the best properties in prime locations.
The key to getting the jump on a great place is being prepared! Make sure you have everything you need to be ready to go. Here’s a video reminder in case you need a refresher – NYC Apartment Hunting Tips – The Key to Getting An Application in FAST.
To get the full NYC Rental Market Update for May 2022, click here.