Housing affordability is at a crisis level in crime-ridden New York City. Mayor Eric Adams and progressives have no real immediate solution as rent prices near record highs ahead of spring.
A new Bloomberg report, citing appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate data, shows the median rent in Manhattan on new leases reached $4,320, up 3.3% from the same month last year. This figure is about $170 off the record high reached last summer.
Rents in Brooklyn rose 2.9% to $3,499, and in northwest Queens, the median was up by $1 to $3,239. Manhattan is the hotspot that could see new highs in the coming months.
According to Jonathan Miller, president of Miller Samuel, rents typically subside in the winter months, yet this year, prices declined less than expected. A combination of a strong job market and low unemployment, coupled with high mortgage rates and low housing stock are some of the drivers in the rental market.
"The economy has been too strong, for the time being at least," Miller said.
In February, about 4,350 leases were signed in Manhattan, up 7.7% from the same month last year. Leases in Brooklyn soared 62% to 2,498, while in northwest Queens, it jumped to a record of 591.
The report did not cover if the more than 175,000 illegals that have flooded the metro area are pressuring rent prices higher.
New York State Assemblymember Jenifer Rajkumar recently warned, "Housing affordability is at a crisis level in New York City. More than half of renters are rent-burdened. New housing construction is not keeping pace with population growth."
"Urgent action is further needed to build more affordable housing in my district and across New York City," New York State Assemblymember Yudelka Tapia said.
According to a Goldman report, one major problem deterring new affordable housing in metro areas is that office tower prices are still too high for conversions.
Finding a home in NYC has become a nightmare. The mayor has yet to provide an immediate solution, as rents in Manhattan are expected to reach new record highs this summer.
