New York’s prime rental market goes from strength to strength

New York’s prime rents hit an all-time high in September 2022, rising by 39% year-on-year. Average rents broke the US$5,000 per month threshold for the first time in June 2022, and now sit at US$5,287.

Depleted stock

Heightened demand for rental properties over the last 12 months has tightened inventory levels across Manhattan.

Demand is likely to remain robust as office workers, international students and corporate tenants return to the city in larger numbers.

Tenants target longer leases

The latest data shows an increase in two-year leases as renters look to lock in for longer and park their purchase aspirations.

We expect stock constraints to ease slightly in the coming months as some sellers choose to rent out their properties while watching the market and looking to mitigate higher mortgage rates.

Investors return

Investors are active, many looking to combine an asset that provides a reliable rental income, wealth preservation and opportunities for capital appreciation. Plus, New York’s low purchase costs add to the city’s appeal.