DEC 03, 2024
If you're feeling the pinch of NYC's rental market, you're not alone. October 2024 saw rents in Manhattan jump to $4,295—a figure typically reserved for the busy summer months. Brooklyn and Queens weren’t far behind, hitting median rents of $3,600 and $3,350, respectively.
What’s driving this surge? Let’s break it down.
With mortgage rates now hovering above 7%, many prospective homebuyers are staying on the sidelines. High borrowing costs are pricing people out of purchasing, leaving them to compete in an already tight rental market. As Jonathan Miller of Miller Samuel Inc. puts it, “The higher the mortgage rate, the higher the rent.”
Here’s how things stack up across NYC:
The NYC Council recently passed legislation requiring landlords to cover broker fees—a cost traditionally passed on to tenants. While this might provide some immediate relief, critics argue landlords could simply bake those fees into higher rents. So, while upfront costs may decrease, the net effect on affordability remains to be seen.
Experts predict rents will remain high as long as mortgage rates stay elevated. Even with policy changes aimed at easing costs, the rental market shows no signs of cooling. For renters, that means budgeting carefully and staying informed about market trends.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
