New York bypasses San Francisco, becoming the most expensive city in the United States for rent
'25.08.2021'
Nurgul Sultanova-Chetin
Rents across New York City have risen to pre-pandemic levels. New York has already surpassed San Francisco as the most expensive rental market in the country. According to a new report from the website Zumper, the average rent for a one-bedroom apartment in New York is now $ 2. The average for the same apartment in San Francisco is $ 810. Gothamist.
New York ranked first on the list of the most expensive rental markets in the United States for the first time. The Zumper rating has been conducted since 2014. Just two years ago, the difference between the rental prices of a one-bedroom apartment in San Francisco and New York was more than $ 800 in favor of the former.
Although rents fell sharply in both cities in the early days of the pandemic due to the departure of many residents, cities' performance in recent months has taken very different trajectories.
This year, rents in New York have jumped almost 20%, while in San Francisco they have increased by less than 5%. This discrepancy may be partly due to the large number of remote IT workers in Silicon Valley who are in no rush to return to San Francisco and prefer to work remotely from cheaper cities.
On the subject: Jeff Bezos bought an apartment in New York: housing nearby immediately rose in price
At the same time, indicators in New York indicate a rapid recovery in prices and demand for rental housing in the city. According to a recent report by Douglas Elliman, the number of new leases signed in Manhattan, Brooklyn and northwest Queens last month was the highest in July compared to other years.
New York is quickly reborn
The rapid resurgence is especially evident in Manhattan. Rich residents left this borough en masse in the early days of the pandemic. But now in the Financial District, as well as in Flatiron and the East Village, rents exceed pre-COVID levels.
Nancy Wu, an economist at StreetEasy, says the trend is a result of homeowners exploiting deferred demand. They are trying to "make up for the time and money lost during the lull in the pandemic by raising prices and removing discounts."
“Potential tenants should be prepared for tougher negotiations in the next few months as rents in New York continue to rise,” she added. "But I expect price increases and landlord expectations to normalize as we get closer to colder months."
