Aug 12, 20222 min read

【ARCFE Finance】 NEW YORK CITY RENTS HIT RECORDS HIGH

The national average rental price across the U.S. is ~$2,000. To NYC residents, this is a bargain deal.

NYC rents are quickly outpacing other major cities like Los Angeles. Expecting a range of 50 to 300 people showing up to an open house has been a familiar story to NYC residents for the past couple of months. As the Fed continues to raise rates, they are simultaneously pushing “would be” buyers into the rental pool, which further elevates the already-high demand to another record high. With low supply not enough to meet the ever-increasing demand, many landlords are raising their price to not only make profits, but also make up for the loss and discounts they gave out during the pandemic.

Manhattan

Manhattan’s average rent remains ~$5,000 for a second month straight with a 1.1% increase from $5,058 in June to $5,113 in July. The supply shortage is also pushing renters to make a much higher offer than the asking price to ensure their chances of getting an apartment.

A similar story can be told for New York’s fastest growing neighborhood, Long Island City. The area was originally an industrial and commercial area with a sprinkling of residential and low rise businesses. When zoning changed 20 years ago, it also changed the basis of growth in Long Island City from an industrial growth to a residential growth. Since then, the growth, expansion and future of residential has grown exponentially.

5 boroughs of New York City

Data source: Streeteasy

Long Island City

LIC has all three basic aspects of real estate: location, location, location. The area is also a transportation hub with 8 lines of subway, 2 ferry lines and buses. It offers first class amenities, diverse dining options and a wide range of entertainment places. The area’s proximity to Manhattan also makes it very convenient for those who wants to enjoy the full experience of living in the city that never sleeps, yet don’t want to pay Manhattan’s high rental price. All of these combined makes LIC very attractive for young professionals.

LIC’s rents have been on a stable growth. According to Zumper, the median rent for 2 bedroom apartment had a 44% year over year increase, from $3,987 in July 2021 to $5,735 in July 2022. We expect the rental market will continue to grow strongly in the future as the demand is still increasingly high.

Source: Zumper

Watch our Vice President gives an introduction to Long Island City

Mr. John McInerney is a real estate professional, who has had over 30 years working experience in both real estate financing and real estate development prior to joining ARCFE. He is responsible for evaluating and selecting the right projects for ARCFE and managing ongoing investments. Under his direction, ARCFE has built a team that has extensive experience and expertise in the New York real estate market.