By Maribel Velazquez
Aug 27, 2024, 5:44 PM EDT
During the COVID-19 pandemic, rent prices skyrocketed in some U.S. states, with the New York market experiencing the steepest rent declines during that time, but its median rent rebounding to pre-pandemic levels by spring 2022.
Interest rates, raised by the Federal Reserve to combat inflation, have made mortgages much more expensive for New York property owners, leading to a sharp rise in rents for more modest apartments.
Realtor.com found that in July, rents for a two-bedroom studio increased 2.2% year-over-year to $3,322, while the median rent for three or more bedrooms fell 5% to $4,996.
The same outlet also reported that there is “greater demand for smaller rental apartments” compared to larger ones.
Median asking rents in Manhattan declined for the 13th consecutive month in July, this time by 2% to $4,489, down 171% from their pre-pandemic level. While median asking rents rose 3.5% to $3,718 in Brooklyn, 7.7% to $3,175 in the Bronx, and 8.2% to $3,380 in Queens.
In order to be able to rent a home in the aforementioned boroughs, without putting daily expenses at risk, a tenant’s gross income would have to be $179,560 per year in Manhattan, $148,720 per year in Brooklyn, $127,999 in the Bronx and $135,200 in Queens, the aforementioned media reported.
“Although New York was one of the rental markets that experienced the steepest rent declines during the pandemic, its median rent recovered to pre-pandemic levels in spring 2022 and has continued to increase annually since then,” the study said.
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