Rising interest rates from the Fed have led would-be home buyers to turn to the rental market instead, making a tight market even tighter.
“People who were thinking about moving somewhere else, let’s say in the suburbs, where mortgage rates are 3.1 percent at the end of December, now they are in fives; that is a significant increase,” Jonathan Miller of Miller Samuel who analyzed the findings told The Post. “So those people who were perhaps looking at that as an option might be sitting put. And sitting puts fewer apartments available.
“We have seen a lot of renters taking apartments sight unseen, which is a direct factor of these renters being just frustrated,” Gavzie explained. “They are losing apartment after apartment. So they are just wanting to apply immediately even before getting into the units.”The median rental price for Manhattan is now at an average $4,050, which is $800 over what it was just a year ago, according to the eye-openinghas reached $5,000 for the first time in Big Apple History.
For a simple studio, you are looking at an average rent of $3,145, while a one-bedroom runs $4,278, and a two-bedroom averages $5,722. A studio now runs an average of $2,284 per month, according to the latest Elliman report. A one-bedroom averages $3,240, and a two-bedroom has an average rental price of $4,040.Renters saw significant price drops last summer, with studios offering an 11.2% discount, one-bedrooms having a 25.3% discount and two-bedrooms offering a 26.8% discount.“There is certainly significance in pricing between the boroughs.
“The lack of inventory has been the recurring problem, which is keeping prices higher,” Miller reiterated. “But the newest wrinkle in this situation is the spike in mortgage rates which is pushing people who are priced out of the purchase market into the rental market.”Christopher Sadowski for NY Post
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