Manhattan’s median rent rose to $4,000 in May, the first time that threshold has ever been reached, according to a report by the real estate brokerage firm Douglas Elliman.
According to the report, the increase represents a jump of almost 2% from April and more than a 25% increase from May 2021. The average rental price in Manhattan was $4,975 in May, the report said.
Net-effective rents – the rent a tenant pays per month of a lease period, which excludes any concessions made by landlords – also increased, the report said. According to the report, the net-effective median rent increased to $3,942, a 29.8% increase compared to a year prior, the second-fastest annual increase. The net effective average rent surged to $4,903, a 26.5% increase compared to May 2021, according to the report.
Manhattan isn’t the only borough with rising rents. According to the report, the median rental price in Brooklyn increased to $3,250 in May, which is a 6.5% increase from the previous month, and an 18% increase from the previous year. In northwest Queens, the median rental price jumped 20.5% over a 12-month period, from $2,737 in May 2021 to $3,297 in May 2022.
Rents are on the rise again in recent months after decreases were seen earlier in the pandemic, and prices are becoming an issue for many New Yorkers. Half the city's renter households spend more than 30% of their income on rent, while one-third spend over half their income on rent, according to a city report.
Back in early May, in a 5-4 vote, the Rent Guidelines Board preliminarily approved a raise in rates on rent-stabilized apartments throughout the city. The preliminary vote indicated to landlords that they can raise rents between 2% and 4% for tenants on one-year leases, and between 4% and 6% for tenants on two-year leases. The final vote for these possible hikes is expected in June. If approved during the final vote, they will take effect in October.