Realtors describe chaos in New York’s hot rental market

Are you renting an apartment in New York City this summer? Say hello to the exorbitant prices and fight to the end.

Amid occasional heat and rain, there has been a mad rush to rent affordable apartments in Gotham, which has been in short supply for many years. Real estate agents describe chaos when it comes to prices.

“It’s crazy,” Jessica Peters, a real estate agent at Douglas Elleman, told MarketWatch. “We can not even keep up anymore. We are, like, let’s just put this crazy number on, and we’ll get it. “

Offices in the city are again trying to attract more staff: the city is not yet close to full capacity – foot traffic to New York’s office buildings is still 40.6% lower than pre-pandemic levels. But some workers are back, restaurants, movie theaters, Broadway back, college students getting ready to start school.

So, the average monthly rent is $ 725 in June of this year and $ 59 the previous month, according to Zillow. The average monthly rent in New York City is $ 3,300, which is 53% higher than the national average of $ 2,155.

“Many tenants are going to be in a rude awakening.”


– Jessica Peters, real estate agent at Douglas Elliman

On the ground, Peters said, the reality was much worse. “I just rented something … in Williamsburg. It is a large unit on the ground floor of two bedrooms, with a large backyard. We asked for $ 6,500. We got $ 7,000. ”

Peters, who specializes in the Brooklyn area, said while rental rates may vary slightly, the reality is clear to anyone who wants to be in the city.

“If you were to return after not renting in Brooklyn or Manhattan for the past 10 years, many of your tenants would be a rude awakening,” Peters added.

(Reminder: Brokers and real estate agents make money on a commission basis, which means that the hotter the market, the higher their profits.)

However, the New York rental market reflects a broader intensification of inventory pressures, leading to bidding wars among tenants across the country.

But in New York, one of the most expensive cities in the United States, even some tenants of apartments with stable rents can not rest. The city’s Rental Guidance Council has signed up to 3.25% for new one-year leases and 5% for two-year leases.

One of the lists of open residences for Gartenberg in the Two Bridges district of Lower Manhattan.

Screenshot from Streeteasy.com

Mihal Gartenberg, a real estate agent at Coldwell Banker Warburg, said market anger is normal. It only works on the basis of supply and demand.

There are people who are simply willing to pay more, he said. “We get to the point where we do not decide what these things are going to do,” Gartenberg added. “It’s a real market setting.”

Technology has helped some tenants in their search for a home.

A luxury two-bedroom apartment I rented in Lincoln Square two months ago attracted people who flocked through a two-hour open house at ten-minute intervals, as well as potential tenants who joined FaceTime AAPL,
.

“We priced it … too high in my opinion,” Gartenberg said at $ 7,800, but we eventually took more. The person who eventually took over the apartment offered an extra $ 400 … We had an offer of $ 8,200, and they also offered to pay the brokerage fee, which is an extra month. ”

“I feel very uncomfortable with this idea that the first person to see a list is the first to get it.”

This past weekend, she had her homes open for two apartments in the Two Bridges area of ​​lower Manhattan.

“I will only exhibit it in the open house. Gartenberg said before the event. “I feel very uncomfortable with the idea that the first person to see a listing is the first to get it.”

Realtors said buying a home is worth considering, given how dense the rental market is.

Peters said many tenants are trying to become homeowners because rents have risen so much. “People are starting to reconsider at this point whether they should just buy or not,” she said.

“Why would I want to spend $ 10,000 a month on rent if I qualify to buy? It may not be exactly what they want, and it may be a little smaller, but it’s still better than spending $ 120,000 a year on rent. ”

“Do not look at things at the price you want,” Gartenberg said. “Because where the market is today, it’s past your price point.”

(Photo: Getty Images)

But be prepared to go to war when buying a home, Gartenberg warned. She said she offered a newly renovated Hudson Heights apartment on the market, which sold “far above demand,” to the point where it “scared me.” The sale of the apartment has not yet closed, so she said she could not discuss how far the bidder’s request had gone.

Gartenberg priced its Two Bridges apartments at $ 3,550 for a two-bedroom top-floor unit and $ 3,050 for a one-bedroom unit.

Their homes were opened Saturday. Everything went above and beyond. “We were very interested, and we were able to convert the offers into an apartment that was not yet listed and rent it out as well,” Gartenberg said in a follow-up email.

Half of the offers received were from people who viewed the apartment via FaceTime, or from a video you sent to them.

Gartenberg offered rental tips for the summer.

Get your papers in order, such as proof of income, photo ID, 1040 tax form, bank statements and other financial documents. Gartenberg also said: Get your job writing a letter saying you are in a good position.

And given the amount of rent he charges above, she added, be prepared to look below your price point. If you know what building you want to live in, contact the owner’s agent, she said, and find out what’s on the market.

Are you looking for rent in New York and want to share your thoughts? write to: [email protected]

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