Brooklyn and Manhattan have received widespread media attention in recent years due to rising rent prices that seem to have no upper limit. Last month rents continued to climb, with the median rental price in Manhattan reaching $3,380; 2.4 percent higher than in May 2014. Meanwhile in Brooklyn, the increase was even more dramatic. The medium income in Brooklyn this May was up nearly 5% from last year’s figures.
Economic analysts are attributing the continued rise in rents to an improving job market and a prohibitive credit market that has driven some prospective homeowners to opt for rental properties instead. With demands for rental properties still strong, landlords in New York City simply don’t have a compelling reason to reduce rents.
In addition to rising rent prices, the number of overall new rentals in the city has skyrocketed in the past year as well. According to a recent analysis from The Real Deal, there were 85% more new rentals in Manhattan this May than last year, and in Brooklyn new rentals were up a whopping 379%
With the New York City’s citizens struggling to find affordable housing, some experts are concerned about the effect rising rents in Manhattan and Brooklyn will have on the city’s housing market. In a recent interview with The Real Deal, Jonathan Miller of the real estate appraisal firm Miller Samuel described the market as having a great deal of “churn” due to the fight for affordable housing.
Here at Skyline Properties, we’re continuing to keep our finger on the pulse of the New York City real estate market in order to provide our clients with the best, most up-to-date information available. Stay tuned for more updates from Robert Khodadadian of Skyline Properties.