Average rent in Manhattan was a record $5,000 last month

Abstract

Average rental prices were up 29% over last year, while median rent was up by 25% to $4,050 a month. Rents are a key component of the government's consumer price index, which increased 9.1% from a year ago in June, and New York is the nation's largest rental market. The continued price pressure in Manhattan rentals could add to higher inflation in the months ahead, and put more pressure on the Federal Reserve to raise rates in an attempt to tame prices. Miller said higher mortgage rates and fears of a housing downturn are driving more potential buyers into the rental market. Younger renters are also pouring into the rental market. "Even some of the families that went to Miami are coming back." July and August are typically the biggest rental months in Manhattan as tenants look for September start dates ahead of a return to school and work. "He's willing to spend on the rental because when the time is right to buy, he hopes to save even more on the purchase," she said.