Despite all the reports of people flooding out of New York City to move to areas with lower crime and cost of living numbers, somehow, rent prices in the Big Apple have continued to skyrocket.  If the high taxes don’t make people want to leave, the bleak picture surrounding the rental market just might. 

In July, average rent prices hit an all-time high of $5,588 per month, which is 9% higher than last year at this time, and a staggering 30% higher than in 2019.  Median rent also set a record at $4,400 per month.  And how about we make it a trifecta of records, as the price per square foot averaged topped out at a record $84.74. 

All this despite a drop in population since the pandemic, and experts believe those records will be shattered in July as many families make moves before the school year starts. 

Between 2020 and 2022, the population of Manhattan has dropped by 400,000.  And because of remote work, office buildings in the city are operating under 48% of capacity. 

There are several reasons that prices are reaching a tipping point.  One is that with rising interest rates, many people can’t afford to buy a home, so they are forced to rent. 

Shrinking inventory has made finding and landing a good apartment or rental home a massive challenge for most people looking.  Here’s what Janna Raskopf, with Douglas Elliman, told CNBC.   “The vacancy rate is still low, making it very hard for tenants to secure an apartment. Many tenants renewed their current leases and are staying put. I believe this trend will continue at least for the next couple of months.”

Studio apartments in New York have gone up 20%, and it’s even worse for three-bedroom units, up nearly 40%. 

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