Photo courtesy of Bob Vila
While struggling New York tenants wait for federal and state rental assistance to finally reach them, it is reported that New York’s rental market has officially surpassed that of San Francisco. According to a recent report from digital real estate marketplace Zumper, rents in New York City have jumped almost 20% since the start of this year, compared to only 5% in San Francisco.
Other notable findings include:
- The median rent for a one-bedroom in New York is now $2,810, slightly outpacing the $2,800 average in San Francisco
- It’s the first time that New York has held the top spot since the site began tracking rental prices in 2014.
- Just 2 years ago, the spread between the 2 cities was more than $800.
This development can be attributed to several key factors. For one, while both cities witnessed an exodus of residents at the start of the pandemic, New Yorkers are now coming back; remote tech workers in the Bay Area have essentially vowed never to return, but Manhattan’s most notorious zip codes are facing a rapid resurgence of its former, wealthy residents; these neighborhoods – including Flatiron, the East Village, and the Financial District – are now seeing rents above pre-COVID levels according to StreetEasy. One StreetEasy economist, Nancy Wu, stated that the trend is the direct result of “landlords exploiting pent-up demand, and attempting to “make up for time and money lost during the pandemic’s lull by raising prices and erasing discounts.”
She, along with many other experts, caution that “prospective renters should be prepared for tougher negotiations over the next few months as NYC rents continue rising. But I expect price growth and landlords expectations to normalize as we head into the colder months.”
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