‘That’s crazy’: Real estate agents describe chaos in New York City’s hot rental market

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

Amid the occasional heat and rain, there’s a crazy scramble to rent affordable apartments in Gotham, which was Lack of supply for many years. Real estate agents describe chaos when it comes to prices.

“It’s crazy,” Jessica Peters, real estate agent with Douglas Elleman, told MarketWatch. “We can’t even keep up anymore. We’re, like, let’s just put in this crazy number, and we’re getting at it.”

City offices are trying to attract more employees again: The city isn’t near full capacity yet — foot traffic to office buildings in New York City is still decreased 40.6% compared to pre-pandemic levels. But some workers are back, restaurants, movie theaters, Broadway back, college students getting ready to start school.

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

“A lot of the tenants will 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’s a large two-bedroom ground floor unit, with a large backyard. We were asking for $6,500. We got $7,000.”

Peters, who specializes in the Brooklyn area, said that while rental rates may fluctuate a bit, the reality is clear for anyone looking to be in the city.

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“If you were to come back after not renting in Brooklyn or Manhattan in the past 10 years, a lot of your renters would be in a rude awakening,” Peters added.

(Reminder: Realtors 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, which is leading to Bidding wars between 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 rent can not get a rest. The city rent guidance board has fell on high Up to 3.25% for new one-year leases, and 5% for two-year leases.

One of the listings 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 works only on the basis of supply and demand.

There are people who are simply willing to pay more, he said. “We’re getting to the point where we don’t decide what these things are going to do,” Gartenberg added. “This is a real market institution.”

Technology has been helping some renters in their search for a home.

A luxury two-bedroom apartment I put on the market for rent two months ago in Lincoln Square has attracted people flocking to it through a two-hour open house in ten-minute increments, as well as potential tenants who have joined FaceTime AAPL,
.

“We priced it in my opinion…too high,” Gartenberg said, at $7,800, but we ended up taking more. The person who ended up taking over the apartment offered an extra $400… We had an offer of $8,200, and they also offered to pay the broker 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.”

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

“I will only show it at the open house,” Gartenberg said before the event. “I feel very uncomfortable with the idea that the first person who sees a listing is the first to get it.”

Real estate agents said buying a home was worth considering, given how dense the rental market is.

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

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

Don’t go see things at the price you want, said Gartenberg. “Because where the market is today, it’s beyond your price point.”

(Photo: Getty Images)

But be prepared to bid wars when buying a home, Gartenberg warned. She said she offered a newly renovated Hudson Heights apartment on the market, which sold “far above the question,” to the point where it “made me freak out.” The sale of the apartment had not yet closed, so she said she was unable to discuss how far the bidder’s request had gone.

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

Their homes were filled open on Saturday. Everything went above order. “We had a lot of interest, and we were able to turn the offers into an apartment that is 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 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 to write a letter to say you’re in a good position.

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

Looking for rent in New York and want to share your thoughts? Write to: [email protected]

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