The median rent in Manhattan jumped to a record $5,000 a month in June.

The median monthly rent paid by a Manhattan apartment or co-op tenant rose to $4,050 in June, up nearly 25% from a year ago, and set a new record for the fifth straight month, according to a brokerage firm report. Douglas Elliman and Miller Samuel Appraisers and real estate consultants. The median rent, which is the midpoint of all rents, topped $4,000 a month for the first time in May.

The median monthly rent, which is the sum of all rents divided by the number of rents included in the data, was even higher at $5,058 in June. This is almost 30% more than a year ago, and for the first time the average has exceeded $5,000 per month.

The rent has been increased in part because potential homebuyers have decided to put their search on hold and rent instead, said Jonathan Miller, President and CEO of Miller Samuel.

“You have more people turning around, they were on the edge to buy a house, but now that mortgage rates have skyrocketed, they have entered the rental market,” Miller said. “The market is already crowded. Tit makes her tougher.”

These tenants tend to have more money and are often in need of a larger and more expensive family home, pushing up the average.

The median price of a three-bedroom apartment in June was $9,469 per month, up from $7,394 a year ago. Meanwhile, the median price for a one-bedroom apartment was still under $5,000 at $4,278, up from $3,475 a year ago.

Miller said some relief is expected for tenants in the near future.

“New rental activity in Manhattan doesn’t peak until the end of the summer,” Miller said. “If there is no recession, we expect a seasonal increase in demand, which will put more pressure on rents.”

Both the median and median rents have more than made up for the losses seen during the pandemic, Miller said, with median rent up 14% in June from June 2019, and median rent up 19% from pre-pandemic. level.

The number of new leased premises in June increased compared to the previous month for the fifth month in a row, and the vacancy rate remained below 2% for the seventh month in a row. A year ago, the vacancy rate was close to 7%.

The sweeteners that landlords offered to New York renters when the market fell off a cliff during the pandemic are now in short supply, the report says. Benefits were only offered for 15% of new listings, compared to 34% a year ago.

Bidding wars are intensifying for the fourth month in a row, especially in the luxury goods market.

How long will prices continue to rise?

“Nothing grows forever, but we are poised for even more growth in the near future,” Miller said.

Looking to the fall and next year, he said renters will hit the affordability threshold. But even then, prices will level off rather than fall.

“The way things are right now, I’m not sure what’s causing the rent to drop,” he said. “But the recession is the star of the conversation. The Fed is using a baseball bat for the economy and there is another rate hike in store. There is still a huge amount of uncertainty.”

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