Average Manhattan, New York Apartment Rents
Posted by Wei Min Tan on February 18, 2022
Wei Min Tan gives guidance to global investors on what to expect in terms of average Manhattan, New York apartment rents.
Average Manhattan, New York Apartment Rents
The average Manhattan, New York apartment rent as of January of 2022 was $2,811 for a studio, $3,707 for a 1-bedroom apartment, $5,467 for a 2-bedroom apartment, and $9,121 for a 3-bedroom apartment. This is according to the January rental report from Miller Samuel.
The key trend is that compared to a year ago, rents increased a lot. The rent on some of our clients’ apartments increased by 50 percent. 2020 was Covid year and a lot of people moved out of Manhattan resulting in a lot of inventory. The average rental prices were down by 25 to 30 percent. Currently, rents picked up dramatically because companies are calling people back into the office, mostly three to four days a week. There is no more working from home full time.
Rental Price Per Square Foot
The rental price per square foot is the annual rent divided by the size of the apartment. As the apartments get bigger, the rent per square foot gets higher. This is because larger apartments are usually on higher floors and have better views.
This also explains why the price to buy a larger apartment, in terms of room count, as well as the rent to rent a larger apartment, increases on a price per square foot basis.
Manhattan Rentals
The median rental price as of January 2022 was $3,550, 2.2 and 18.3 percent higher compared to December and the prior year respectively. However, the number of signed leases decreased. While rents increased a lot, transaction volume was actually lower by 5.3 and 49.5 percent compared to prior month and prior year.
January 2022 had 4,316 apartments for rent on the market, an 83.3 percent decrease from a year ago. This shows the rental inventory is being absorbed. The vacancy rate in Manhattan is at 1.70 percent which is probably the lowest in the U.S. Why? It’s because supply is limited and demand is always high. This is one key reason why investors like to invest in Manhattan, because it is stable. It’s a landlocked island where supply and development are very constrained.
What We Do
We focus on global investors buying Manhattan condos for portfolio diversification and long term return-on-investment.
1) Identify the right buy based on objectives
2) Manage the buy process
3) Rent out the property
4) Manage tenants
5) Market the property at the eventual sale
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