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

The average monthly rent for a Manhattan apartment went over $5,000 for the first time, and brokers say demand and prices are going to go even higher into the fall.

According to a report, the average apartment rent in June was $5,058, the highest on record. The average rental price was up 29% over last year while the median rent was up 25%.

The increases could have a negative effect on inflation. New York is the nation's largest rental market, with rents increasing 9.1% from a year ago in June.

The Federal Reserve will be under more pressure to raise rates if the price pressure in Manhattan continues.

Jonathan Miller is the CEO of Miller Samuel.

Miller said higher mortgage rates and fears of a housing downturn are driving more people to rent.

The supply of Manhattan apartments for rent is near a record low. At the end of June, there were 6,400 apartments available, but the vacancies were just 1.9%.

Despite concerns about high crime, taxes and troubled subways, many families and renters who left the city during the Pandemic are now coming back. People under the age of 30 are entering the rental market. Some members of the Gen Z demographic are coming to the city after college to take advantage of the city's culture and nightlife.

Valirjana Gashi said that they want to be in New York. Some of the families that went to Miami are returning.

In Manhattan, July and August are the busiest months of the year, with tenants looking for September start dates ahead of a return to school and work. Open houses for sales and rentals have never been more crowded, according to brokers.

There are lines down the block when a good rental is available.

Rentals now have bidding wars on a regular basis. One of her clients is looking at a one-bedroom downtown that costs $6,000 a month, up from $5,000 a month a year ago. The client is trying to outmaneuver rivals.

A client who plans to eventually buy in Manhattan but is renting in the meantime has a budget of over $30,000 a month.

She said that he was willing to spend on the rental because he wanted to save more on the purchase. He thinks the sale prices are going to go down.