New York’s prime rents continue to climb sparking investors’ attention
As investors look to real estate as an inflation hedge, New York’s credentials as a global and transparent market that faces strong tenant demand are back in the spotlight.
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Rents continue to climb sparking investors' attention
The rental market bounced back strongly following the pandemic. Luxury rents are up 49% since their pandemic low in Q1 2021, and increased 19% in 2022 alone.
A lack of stock persists leaving tenants opting for longer leases. The number of properties available for rent in Manhattan has shrunk from a high of 41,516 in October 2020 to 14,148 in January 2023.
Tenants are looking to lock in for longer whilst mortgage costs remain elevated and rental stock constrained. Two-year leases as a proportion of all Manhattan leases have jumped from around 16% in February 2021 to 42% in January 2023, according to data from Miller Samuel.
At US$10,995, Central Park South has the most expensive median rents. The fashionable neighbourhoods of Tribeca and Soho sit in second and third place with median asking rents of US$9,500 and US$6,395 per month respectively.
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Photo by Leslie Cross on Unsplash