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Manhattan rents hit record high in January

Median rents in Manhattan hit a new record in January as a robust job market and limited supply of apartments pushed prices higher.

reported that median rents rose 15% year-over-year to $4,097, the highest ever for a January. Douglas Elliman and Miller SamuelAverage rent in Manhattan is $5,142, up 13% from January 2022.

Analysts and real estate experts believe that rents start to fall After January record surge The end of last year. But despite a cooling economy and high-profile layoffs in the financial and tech industries, Manhattan rental demand Stay strong.

“We don’t see a significant drop in rents,” said Jonathan Miller, chief executive of Miller-Samuel, a real estate appraisal firm. “They’re really just moving sideways.”

Analysts say the main driver of Manhattan’s rental market is a strong job market. While layoffs at big tech companies and Wall Street banks make headlines, New York’s overall job market and wage growth remain strong. As more workers return to offices, it is also likely that more employees will return to cities.

New leases in January surged 8% over December and 9% over January 2022.

At the same time, the inventory of available apartments has increased, but remains low. Last month, Miller said the vacancy rate, or share of available apartments, was 2.5%, below Manhattan’s typical 3%.

Joshua Young, executive vice president and managing director of sales and leasing at Brown Harris Stevens, said the strength of rentals is “a tale of two cities.”

He said there is strong demand for new, high-quality rental properties on the market in prime locations, and a limited supply of the best apartments. There are more and more potential apartment buyers to choose from.

“They are sitting in their rentals waiting until the price drops,” he said.

Rental demand is particularly high for luxury rental properties, as many potential luxury buyers choose to rent. Nearly one in five luxury rentals in January ended up in a bidding war, Miller said.

Analysts say rents are unlikely to fall significantly in the coming months unless the economy and job market lose momentum.

“I think 2023 will be as strong as 2022 when it comes to the rental market. [goes]said Young.

https://www.cnbc.com/2023/02/09/manhattan-rents-record-high-january.html Manhattan rents hit record high in January

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