“Inventory remains very, very tight, and demand is very high and extremely outpacing the supply,” said Hal Gavzie, executive manager of leasing for Douglas Elliman Real Estate.
Listings that hit the market have such high interest that as many as 50 people might check out an apartment the same day it’s posted, Gavzie said. There have been bidding wars at every price point in the city, he said.
Bidding wars are averaging around 21% of rental leases, Miller said. About 11% of renters are paying a premium on top of the already high rents, he said.
“It is not a fun market for tenants at the moment,” he said.
Tenant fees are also making a comeback, and landlord concessions are down about 50% from last year, Gavzie said.
In Manhattan, the average monthly rent increased slightly from March to April to hit $4,822, but it is 32% higher than a year ago, when the average rent was $3,650, the report said. The borough’s listing inventory was slightly up to 4,709 units from March but still significantly below the 20,773 units available in April last year.
Luxury apartments saw only a slight average rent increase, to $12,836 per month, which is 38% above the average asking rent of $9,336 per month a year ago, the report said.
Downtown continues to be the most expensive market, with an average asking rent of $4,450. However, the East Side recorded the highest increase from March to April, with average monthly rent increasing by 10.5% to hit $3,750.
Brooklyn isn’t far behind, with the average asking rent increasing to $3,517, which is up 12% from last year. Its listing inventory continues to decline, with 2,551 units available last month—a decline of 84% from a year ago.
Queens rents continue to rise as well. Last month the asking rent was $3,348, up from $3,096 in March. The listing inventory also remains low, with 409 units available, down 89% from 2021, when 3,598 units were on the market.
An increase in mortgage rates is adding more pressure on apartments, as it is bringing some potential homebuyers back into the rental market, Miller said.
It’s not going to be easy for renters searching for a new apartment, Gavzie said, especially as the city enters the peak of the rental market season. The low inventory is giving landlords the upper hand, he said.
“I’ve been doing this for 20 years, and I have not seen the demand outweigh the supply this much,” he said. “It is unprecedented.”