Rent for a Manhattan condo stays mind-bogglingly excessive

Washington
CNN
 — 

Even as rents are cooling in some elements of the nation, it has by no means value extra to lease a Manhattan condo through the month of January because it did final month.

January is generally a sluggish month for housing, however median lease final month was the very best of any January on document and the third highest for any month, in line with a report from Douglas Elliman, a brokerage, and Miller Samuel, an appraisal and guide agency.

“Rents are within a whisker of the summer high, and it is only January, which is typically a weaker rental time,” stated Jonathan Miller, president and CEO of Miller Samuel. “Almost every price indicator is at or near all-time records. It seems to confirm that rents aren’t going to go down.”

The median value of renting an condo in Manhattan was $4,097 in January. That’s up 15.4% from a 12 months in the past and up 1.2% from December.

A one bed room had a median lease of $4,000, up 14.3% from final 12 months, whereas a two bed room had a median lease of $5,532, up 11.8%.

Since lease peaked in the summertime, there was an expectation that rents would deteriorate through the fall and winter, stated Miller.

But in January, because the emptiness charge slipped for the primary time in 9 months and the variety of new leases expanded yearly for the primary time in three months, lease costs remained sturdy, climbing barely larger than December.

“The opposite of rising rents is not necessarily falling rents, it is stabilizing rents,” Miller stated. “And now rents are moving sideways, if not moving a little higher.”

Affordability continues to be a problem throughout the housing market, with larger mortgage charges pushing homeownership out of attain for a lot of people who find themselves persevering with to lease — and propelling sturdy demand for leases.

On high of demand from would-be consumers from remaining renters, there may be sturdy employment within the area protecting upward strain on rents.

“Despite expectations, January rents certainly make the case that as long as interest rates remain as high as they are, rents could go farther up,” stated Miller. “Of course, significant job loss is going to create a lower rent environment.”

Miller is asking 2023 the “year of disappointment” for these looking for housing, “because we’re not expecting a meaningful increase in affordability, barring a recession.”