People walk on a street in New York, the United States, on July 20, 2021. (Xinhua/Wang Ying)
The average rental price in Manhattan reached 5,058 U.S. dollars in June, up 1.7 percent month on month and 29 percent higher from the same time of 2021, according to a recent report.
NEW YORK, July 25 (Xinhua) -- Tenants in New York City are having difficulties in finding affordable apartments or houses as the average residential rental price has exceeded 5,000 U.S. dollars in Manhattan borough for the first time.
The average rental price in Manhattan reached 5,058 U.S. dollars in June, up 1.7 percent month on month and 29 percent higher from the same time of 2021, according to a recent report by real estate broker Douglas Elliman.
New York City ranked the third least affordable housing market in the United States, according to RealtyHop Housing Affordability Index in July.
Nikki Huang, a resident in Manhattan, said she started to look for a new house around one month ahead of the expiration of her previous lease and visited more than ten units.
"My favorite unit is not available and some units cost beyond my budget greatly," Huang told Xinhua.
There are pockets of air in the rental market and growth of rental raises eyebrows, said Huang, who has been living in New York City for a few years.
Huang said her living standard fell slightly as the rental of her new unit is substantially higher but with a smaller floor area.
"I have to accept the reality that rental price jumps around 50 percent amid the inflationary environment," said Zeng Zihang, a New Yorker, who is in a transition.
It's not easy to find the right property and pay a field visit as the listings in the market are less now, Zeng said.
Inflation together with the high rent exerts great pressures on people, said Zeng in a recent interview with Xinhua.
Stephanie Cheng, a resident in Manhattan, said she was pretty shocked that the average rental price reached 5,000 dollars in the borough.
People walk past the Lower Manhattan skyline in the Brooklyn borough of New York, the United States, Oct. 2, 2021. (Photo by Michael Nagle/Xinhua)
Cheng said her rental went down to 2,550 dollars after the outbreak of the COVID-19 pandemic from 3,750 dollars, but has rebounded to almost 4,000 dollars.
Cheng told Xinhua that she doesn't know if she can keep affording this type of rent in New York City.
"If I didn't have my boyfriend, I don't think I can afford the rent," said Cheng, who works as an actress.
Many people returned to New York City to study or work as concerns over the pandemic faded away while there was not much new housing supply, said Sunanne Zhu, managing director and co-founder of Asian American Real Estate Brokerage.
As rent is on the rise, many people choose to renew existing leases, which also drives down supply and contributes to a spike of apartment rental prices, according to Zhu.
A newly listed rental only stayed on market for 50 days on average in June in comparison with 87 days in the same period of last year.
Listing inventory only stood at 6,433 units in June, down 45.7 percent, which means tenants have fewer choices.
Meanwhile, the average rentals in June within Brooklyn and Queens increased 20 percent and 15.1 percent year on year, respectively.
The further hike of mortgage rates in June keeps many people continuing to rent houses, and the arrival of new graduates and postgraduates every year drives up demand in the city, according to Peggy Peng, a senior property agent in New York City.
The properties equipped with washing machines and dryers are not common and they saw higher growth of rent, said Peng in a recent interview with Xinhua.
Peng said the rental market in New York City would cool down and become more reasonable as newcomers settle down after September or October. ■
