The average monthly rent for a Manhattan apartment surpassed $5,000 for the first time last month — and brokers say demand and prices are headed even higher into the fall.
The average apartment rent in June was $5,058, the highest on record, according to a report from Miller Samuel and Douglas Elliman. Average rental prices were up 29% over last year, while median rent was up by 25% to $4,050 a month.
Aside from pricing out many renters, the increases could have knock-on effects amid broader inflation pressures. Rents are a key component of the government’s consumer price index, which increased by 9.1% from a year ago in June, and New York is the nation’s largest rental market.
The continued price pressure in Manhattan rentals could add to higher inflation in the months ahead, and put more pressure on the Federal Reserve to raise rates in an attempt to tame prices, analysts say.
“There are no signs of a slowdown, at least not yet,” said Jonathan Miller, CEO of Miller Samuel, said in a note.