It really should not make sense economically. How can New York City landlords have any leverage to raise rents?
A recent report by Zumper found that the median price of a Manhattan one-bedroom has increased by 25% this year compared to last; a two-bedroom has increased by 27%. It also showed that in January NYC rents were the highest in the nation.
Not sure how that can be. Sure people are selling their homes and moving out, but the rental class has less options and need to pay what the market demands after two years of stagnation.
“It should be illegal,” New York real estate agent Brett Allen told The New York Post of the absurd recent rent increases he’s seen in the boroughs that are irrespective of amenities or renovations. “It’s horrible. I’m seeing a lot of people being turned out of their homes, people who paid rent on time with perfect credit scores.”
What type of amenities are NYC landlords offering? Getting stabbed on the subway? Getting mugged or shot on the street?
This proposition goes against any economic model I have ever heard of. The supply should be in excess of the demand. But yet younger renters still keep coming to the Big Apple and landlords have a sense they can makeup for two years of no rental income.
“This is landlords asking for higher prices than they ever have before just to see what they can get,” Allen said.
Well live by the market, die by the market. This rental rebirth hangs by a sliver given New York’s near-term future. One major crime in a hot market like the West Village could see rents tumble back to Covid-era pricing.
Perhaps the rent is too damn high — to harken back to another time — but this window may be closing very soon if NYC can’t get its act together.