Economists at online listing site Apartment List recently reported that the average cost of rest in New York City rose 33 percent between January 2021 and January 2022, nearly twice the national average. New York City had the highest increase in monthly rent prices out of the 100 U.S. cities tracked by Apartment List.
Though the cost of rent throughout the city decreased at the onslaught of the pandemic, rent costs are now rising past pre pandemic prices. Higher demand for apartments in the city has contributed to the increase in rent prices, as workers return to New York and potential homeowners decide to rent due to the high cost of homeownership.
The increase in rent prices also comes at a time when many landlords are no longer offering the discounts they used throughout the pandemic to attract potential tenants. Nearly half of all New York City rentals are not rent regulated, leaving renters vulnerable to market driven rent increases.
The increase in rent is even steeper in certain parts of New York City. Upper West Side renters have seen a 40 percent increase in rent costs over the past year. The median cost of rent across Manhattan rose by 24 percent in the past year, rising by over 4 percent from January to February alone. According to a recent report published by Miller Samuel, rent in Manhattan has risen to a monthly average of $3,700 per month.
Other New York City boroughs have also seen higher rent prices. The median cost of rent in Brooklyn rose over 10 percent from last year, with rent prices rising by 3.6 percent in between January and February. Rent prices are expected to continue rising throughout the city, especially as more New York City based employers require their workers to return to the office.