The New York City rental market comes back strong with a 22.8% increase in November

The New York City rental market is bouncing back after its decline in 2020. When the pandemic hit New York City, rental prices were rapidly going down. The median asking rent price reached its lowest point in January 2021, according to the StreetEasy data dashboard. But then the NYC rental market began to regain its strength. The Douglas Elliman and Miller Samuel report found that the net effective median rent in New York City increased annually by 22.8% to $3,369. Net effective rent refers to the amount a tenant pays on average every month for the time of the lease. 

People who left the city at the beginning of the pandemic are now coming back. In addition, more new residents are coming to New York City, according to findings by Comptroller Scott Stringer. The new wave of potential tenants spikes the demand in the real estate market. The rent in Brooklyn and Queens did not surge drastically. But new lease signings in both neighborhoods have reached the highest levels in a decade, the Douglas Elliman and Miller Samuel report suggests.

The luxury real estate market has also had a great month. The market share of luxury doorman buildings in Manhattan at or above $15,000 reached its peak compared to the past ten years. Other report findings show that the vacancy rates in Manhattan have reached an all-time low rate. Moreover, fewer landlords have to offer bonuses, such as free months of rent or a reduced security deposit to attract potential tenants.

Resources:

“NYC Has Regained Three-Quarters Of Residents Who Fled During COVID, Data Suggests,” By Jake Offenhartz (Gothamist, 2021)

“The Pandemic’s Impact on NYC Migration Patterns,” (New York City Comptroller Scott M. Stringer, 2021)

“New York City rents jump 22.8% in November, as the rental market bounces back,” by Anjali Sundaram (CNBC, 2021)

“NYC's comeback has made luxury apartments more expensive than ever,” by Juliana Kaplan and Hillary Hoffower (Business Insider, 2021)

“StreetEasy Data Dashboard,” (StreetEasy, 2021)

“Elliman Report, November 2021, Manhattan, Brooklyn, and Queens Rentals,” by Douglas Elliman and Miller Samuel (Miller Samuel Inc., 2021)

“More People Are Moving to New York Now Than Before the Pandemic,” by Caroline Spivack (Curebed, 2021)

“What Every NYC Renter Should Know About Rent Concessions,” by Jordi Lippe-McGraw (StreetEasy, 2020)

"What Is Net-Effective Rent? StreetEasy Makes It Easier to See What You'll Really Pay," by Ian Port (StreetEasy, 2020)