Where is the Rental market going in 2022?

I know I always talk about where the NYC sales market is going, but, recently there have been some questions about the rental market! So here it is... the New York City rental market certainly saw an uptick and increase in rental pricing and demand toward the end of the spring season, especially in May through October.

Rentals are typically very seasonal, but it does not seem like the momentum is going to stop. The rental market has a shallow inventory which may cause rentals to go back to 2019 pricing. The trajectory is seemingly increasing, and the median rental price may even go up.

We see a significant boost in signed leases because many offices are asking their employees to come back to work. There is a substantial rise in home-sale price inflation, making it harder for millennials to purchase homes, resulting in more traffic in the rental market.

I represent 2 Cooper Sq, a luxury rental building in NoHo, where firsthand the difference between Q1/Q2 concessions, going from an average of three months’ free to nearly 100% leased.Currently, we are not offering concessions, and units increased an average of 5% in pricing by mid-Q3 2021.

The demand for apartment units will remain strong in 2022, as higher mortgage rates will ease the need for owner-occupied homes and increase rentals.

If you are interested in renting at 2 Cooper Square DM email me here.