Manhattan rents climb back to pre-pandemic levels

Over the past 18 months, as the pandemic wreaked havoc on the rental market in Manhattan, landlords offered high discounts on real estate. Taking these cuts into account, the median rental price for all Manhattan apartments rose to $ 3,382 in October, up 18% from the previous year, according to a report by brokerage firm Douglas Elliman and appraisal firm Miller Samuel.

“Prices are not quite back, but very close to being back to where they were pre-pandemic,” said Jonathan Miller, president and CEO of Miller Samuel.

The median monthly rent for a one-bedroom apartment was $ 3400 in October, up 1[ads1]1% from last year, while a two-bedroom was $ 5158, up 20% from a year ago, according to the report.

“The upward trend began in early spring with vaccine adoption as the city began to see inbound migration with institutions and companies reopening,” Miller said.

At the upper end of the market, prices for some categories of apartments are already above pre-pandemic levels, according to the report.

“The higher end of the market is rebounding faster and faster,” Miller said.

When looking at rent increases for “doorman” properties, which distort higher-end and more expensive, versus “non-doorman” buildings, there is a significant gap.

The median rent for apartments in doorman buildings, including landlord discounts, was $ 4,263, up 25% from last year, Miller said. Prices are even 8% above their pre-pandemic levels from two years ago.

But the median rent for apartments in buildings other than doormen, including discounts, was $ 2,560, up just 7% year-on-year – and that was the first annual increase in 18 months, Miller said. Rental prices in these buildings are still down 11% from October 2019.

And rental rates are rising even faster for expensive Manhattan apartments. The median rent for the loft has more than doubled since last year, according to the report, with the median rent of $ 5,000 last year, rising to $ 10,600 a month in October.

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Miller said one of the main reasons for the polarization in performance between high-end rental buildings and lower-end buildings is that the economic damage caused by the pandemic was much more punitive for low-wage earners than for middle- and upper-income workers. team.

Throughout the Manhattan market, the newer, more advanced properties are experiencing sharper price increases as demand returns, Miller said. And that is a trend that is expected to continue, he said.

“There has been a release of pent-up demand that came with a greater perception of security and activity that draws inbound migration from across the country,” he said. “Now with the easing of the Covid travel ban, we expect an increase in international demand in the coming months. The next leg up will be early next year when corporate America returns and people return to work in large numbers.”

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