NYC Residential Rental Market Report: March 2023 (2024)

FAQs

Will NYC rent prices go down in 2023? ›

With all the predictions for the coming year, here's one most New Yorkers will be thrilled to hear: New York City rent prices are expected to drop in 2023. All that remains to be seen is when those price decreases occur and by how much.

NYC Rent 2023: NYC panel proposes 16% rent increase for 2-year leases in rent-stabilized apartments - ABC7 New York.

Rent Prices. As of June 2023, the average rent for a 1-bedroom apartment in Manhattan, NY is $4,100. This is a 3% increase compared to the previous year.

The pandemic caused an exodus of such proportions that building owners were forced to cut rents to their lowest levels since the bad old days of 2011.

While there's no consensus on what rents will do exactly in 2023 — go up a little, go down a little, or stay flat, according to three forecasts — what's clear is they are expected to return to more normal growth patterns, instead of the unsustainable, record rates seen in 2021 and 2022.

New York City apartment rents should drop a bit in 2023.

The median Manhattan rent was $4,200 per month in February 2023. This figure has remained unchanged since October 2022 — five consecutive months. However, pricing remains 12% higher when compared to February 2022. Average rent for all apartment types increased year-over-year.

With passage of the Housing Stability and Tenant Protection Act of 2019, effective June 14, 2019, high-rent and high-income deregulation is no longer permitted. For more information, contact NYS Homes and Community Renewal (HCR), the state agency which administers the rent laws.

Landlords cannot raise rent annually more than 5% plus inflation according to the regional Consumer Price Index, for a maximum increase of 10% each year.

It'd be good for an average, middle class life in NYC. You'd be comfortable, with a nice 1 bedroom in a safe neighborhood, can buy whatever you want within reason, can go out every weekend and eat out nicely, take a couple of international vacations a year, save a bit for retirement etc.

What is the best time of year to rent in Manhattan? ›

Depending on what your goals are, the best months to rent an apartment in NYC are either May and June or October and November. Late spring and early summer are best for apartment hunters who want lots of options, while the fall brings better prices and less competition.

Partly as a result, net operating income for buildings with rent-stabilized apartments fell 7.8% in 2020 and 9.1% in 2021, according to the Rent Guidelines Board. It had risen every year from 2004 through 2017, is up 49.9% after inflation since 1990, and averaged $576 a month per unit in 2021.

Just because there's a recession doesn't necessarily mean rent prices go down. In fact, during the 2008 recession, it was the exact opposite. In the current rental market, we have seen the rate of increase in rental prices come down, but this only translates to lower rent prices if you're in select markets.

Most rent increases rarely exceed 5% of your current rent amount in New York City, but the exact amount your landlord can raise your rent depends on what type of apartment you live in.

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Back in Manhattan, the average monthly cost for a studio apartment saw the biggest increase from last year. It was up 13.5% in April, with a median price of $3,235. A one-bedroom apartment averaged $4,200, up 5% from last year, while a two-bedroom apartment had a median rent of $5,500, up 11% from 2022.

The short answer is, yes. You can negotiate your rent. When you're renting an apartment, the price you pay isn't set in stone. But before you even consider negotiating, you need to make sure you know why you're asking for a discount.

Manhattan median rent rose 12.8 percent to $4,175 last month compared to March 2022, and net effective rent, which factors in concessions, increased 13.2 percent to $4,124 year over year—both were new records.

When it comes to New Yorkers moving out, most are relocating to neighboring New Jersey, the study found. The latest data shows that 58,664 people made the move to the Garden State during the year of the study, 2019. 46,618 people moved from New York to Pennsylvania in 2019, giving the state the third-place position.

The median rent year-over-year climbed almost 15%, while 24% less new leases (excluding renewals) hit the market. The median rental price as of April 2023 was around $3,500, average studio price of nearly $2,900, and a one-bedroom can be found for roughly $3,350 on average.

New leasing activity was also up — 15.4% as compared to last year — and up 20.5% from February, per the report. The uptick in rental activity could be attributed to high mortgage rates, which are nearly double compared to a year ago, meaning many would-be buyers are renting instead.

How much can landlord raise rent in NYC rent stabilized? ›

For a one-year lease commencing on or after October 1, 2021 and on or before September 30, 2022: 0% for the first 6 months of the lease and. 1.5% for the remaining 6 months of the lease.

Under the Rent Stabilization Law, an owner may begin an eviction proceeding when the current lease expires, but only after the tenant is given written notice that the lease will not be renewed. This notice must be served at least 90 and not more than 150 days before the current lease term expires.

Rent-stabilized apartments

Specifically, the NYC Rent Guideline Board limits how much a landlord may increase your rent each year. In June of 2022, the board set a 3.25% increase for one-year lease agreements and a 5% increase for a two-year lease agreement.

AB 1482 imposes rent caps on some residential rental properties in California. It also imposes “just cause” eviction requirements that apply after residents have occupied the unit for a certain period of time.

A single family home is exempt unless it's owned by a real estate investment trust (REIT), a corporation, or an LLC where one of the members is a corporation. The owner must inform the renter in writing that the tenancy is not subject to the rent cap and just cause limitations.

AB-1482 also exempts single-family owner-occupied homes, including residences in which the owner-occupant rents or leases no more than two units or bedrooms, that are not owned by corporations or real estate investment trusts.

New York's cutoff to be in the 1% is $777,126. The 1% pays an average income tax rate of 27.09%, while what they pay accounts for 48.10% of all income taxes paid.

"Middle class" is defined by the PRC as those earning between two-thirds and twice the median American household income, which in 2021 was $70,784, according to the United States Census Bureau. That means American households earning between $47,189 to $141,568 are in the "middle class" as defined by the PRC.

RentHop's analysis found that renters are advised to sign a lease in February, the cheapest month to rent in New York. Rental prices start to increase in early May and reach a peak in July. They begin to decrease again in October, reaching their low in February.

What month is rent highest in NYC? ›

On the other hand, the summer months, from June to August, are the worst time to rent an apartment in NYC. During this time, demand for apartments is at its peak, and rental prices are the highest.

As Many as 595,000 Households Remain Behind on Rent.

However, ANHD's analysis of the most recent Census Household Pulse Survey Data showed that as of January 10, 2022, 17.2% of respondents in New York were behind on rent payments, translating to 595,000 of the State's 3,461,000 renter households.

Rents Go Up by 16 Percent? Here's What to Know. A New York City panel may allow rents to rise in roughly one million rent-stabilized apartments. But increases as large as those discussed by the panel — up to 15.75 percent on two-year leases — are unlikely.

What is the NYC Rent Freeze Program? The NYC Rent Freeze Program, which includes the Senior Citizen Rent Increase Exemption (SCRIE) Program and the Disability Rent Increase Exemption (DRIE) Program, helps those eligible stay in affordable housing by freezing their rent.

Economic experts are once again ringing the alarm bells over an imminent downturn. A US recession is coming, they say, in the second half of 2023. That time frame begins less than three weeks from now.

The lowest rental rates are usually found between October and April, particularly right after the December holiday season. Fewer people are interested in moving—the weather's bad, schools are in session, etc. So individuals renting between the months of December and March typically find the best rental bargains.

In general, buying a home during a recession will get you a better deal. The number of foreclosures or owners who have to sell to stay afloat increases, typically leading to more homes available on the market and lower home prices.

Discrimination is a big deal in NYC law, and landlords cannot turn people away based on race, religion, age, disability, sexual orientation, gender, or creed. You must talk to a lawyer if you believe you are a victim of discrimination. Without a written court order, they cannot force you to leave your home.

How much time does a landlord have to give a tenant to move out in NY? ›

In New York 5 Page 9 City, 30 days' notice is required, rather than one month. Landlords do not need to explain why the tenancy is being terminated, they only need to provide notice that it is, and that refusal to vacate will lead to eviction proceedings.

It's also worth noting that while foreclosure rates are up year-over-year, experts do not expect to see a wave of foreclosures in 2023, even where home values are depreciating, as many homeowners have substantial equity due to progressive home price appreciation in recent years.

While there are signs of a slowdown in the housing market's year-over-year growth rate, the overall data and forecasts suggest that a crash is unlikely in 2023.

The poll of 29 analysts, conducted between Feb. 15 and March 2, forecast average home prices based on the Case/Shiller index, which rose around 6% last year, were forecast to decline 4.5% in 2023, followed by no increase in 2024. That is slightly less than the 5.6% fall predicted three months ago.