Manhattan Rents Reach Record High in February

Introduction to the Crisis

Winter in New York City often enjoys a cooler real estate market, but not this year. Renters in Manhattan were met with record-high rents in February, with a median rent of $4,500 — a 6.4% uptick from the same time last year. Prices also rose in Brooklyn and Queens as vacancy rates tightened, a new report from Douglas Elliman revealed.

The State of the Market

Everyone, from renters to agents, is feeling the heat. “The fact is, there’s not a lot of room to negotiate,” Douglas Wagner, BOND New York’s director of brokerage services, told The Post. A line of hopeful renters wait outside of an open house in Brooklyn. Bloomberg via Getty Images Prices rose in Manhattan, Brooklyn and Queens in February as vacancy rates tightened. deberarr – stock.adobe.com

The Shift in Rental Strategies

The early bird no longer gets the worm when it comes to applications, either. It’s all about who can offer more, according to Laurel Ferrera, an agent at Keller Williams NYC. Units are advertising at low prices to whip up interest, Ferrera said in an email, and then taking as many applications as possible. “A place on the Upper West Side that was initially marketed at $3,700 for a one bed, one bath ended up being rented for $800 above asking,” Ferrera wrote. “The agent told me, ‘The people who got their apartment [are] willing to go higher if needed.’”

Bidding Wars on the Rise

A quarter of Manhattan deals in February sparked bidding wars, the Elliman report found, also marking a record high. Experts blame the increased competition, in part, on an uncertain economy, skittish homebuyers, and back-to-office mandates. The Elliman report found February’s Brooklyn listings had even fiercer competition than Manhattan. Iryna – stock.adobe.com

The Impact on Renters

Ferrera’s recent client, Alex K. — who didn’t reveal her full name for privacy — thought starting her apartment search in February would give her the upper hand. She was quickly disabused of that theory. “I’d always heard that winter is a lot easier to find places,” she told the Post. “But everybody just seems to want to come back to the city now.” Alex, who is moving from California to New York for work, said she and Ferrara looked at more than a dozen apartments across Brooklyn and Manhattan. In the process, she ended up in four separate bidding wars.

Trends in Queens and Beyond

Compared to Manhattan and Brooklyn, housing inventory in Northwest Queens saw a generous increase. The 103% uptick in available listings in February may have contributed to a higher rate of the borough’s landlords willing to make concessions, eager to attract choosier tenants. Still, bidding wars were documented in a fifth of all deals in Queens. If an apartment today is equipped well and priced well, Wagner said, there will be a line out the door. Paul Martinka

Preferences of Renters

The Elliman analysis also documented a faster rise in the median rent of non-doorman buildings than doorman buildings. Wagner said he has noticed renters aspiring to more outfitted, upgraded apartments, and he said they’re willing to give up an amenity, like a doorman, to get those features. “If the non-doorman apartment is well-equipped, and there’s a washer-dryer in the apartment, and the rooms are not tiny, it makes a huge difference,” Wagner said. “People will maybe give up the idea of a doorman and a health club to save a little bit of money, if they can get something better than an Easy Bake kitchen.” Winter is usually an easier time to find a rental, but not this year. Bloomberg via Getty Images

Conclusion

Wagner predicts an even hotter summer for the market, with prices remaining high and units staying competitive. He advised those looking for better value to consider looking outside the city’s prime locations, like Southern Brooklyn or Eastern Queens. After fighting their way through the bidding wars, Alex K. and her broker Ferrera eventually found the perfect place in Gramercy. In order to snag it, Alex K. offered the owners $400 over its asking price, landing her right at her max budget of $4,000.

FAQs

• Q: What was the median rent in Manhattan in February?
  • A: The median rent in Manhattan in February was $4,500.
• Q: Did other boroughs experience increases in rent as well?
  • A: Yes, prices also rose in Brooklyn and Queens.
• Q: What percentage of Manhattan deals in February resulted in bidding wars?
  • A: A quarter of Manhattan deals in February sparked bidding wars.
• Q: Are there any areas where the rental market might be less competitive?
  • A: Areas like Southern Brooklyn or Eastern Queens might offer better value for those looking for less competitive markets.