Average Rent in New York City Decreases -4.6% in August for No Fee Apartments
September 6, 2023 | the RENT BETTA team
+ Average rent in August decreased-4.6% m/m to $5,290
+ Average rent decreased -2.3% y/y from August 2022
+ Median rent is at the lowest in 6 months
+ Continual rent declines throughout the summer, when rents usually reach their seasonal peak, indicates a slowdown in the NYC economy
RENTBETTA.com, which offers no fee apartments directly from property managers across New York City, announces average rent decreased -4.6% sequentially in the month of August, a welcome relief for renters who suffered record high post-COVID rents.
New York City’s median rent, a measure which is less affected by changes in the most and least expensive apartments and better shows underlying trends, decreased -6.2% sequentially in the month of August.
Median New York City Rents for No Fee Apartments
+ August, 2023 $4,600 -6.2% sequentially
+ July, 2023 $4,904 -2.0% sequentially
+ June, 2023 $5,005 -0.2% sequentially
+ May, 2023 $5,016 +2.6% sequentially
+ April, 2023 $4,887 +3.0% sequentially
+ March, 2023 $4,745
Median rents as of month end. Source: RENTBETTA.com
New York City Rents Decrease through Summer After Post-COVID Records
August’s median is notable due to its accelerating trend lower during a time of year when rents typically strengthen. The summer is typically the most expensive time of year in New York City to rent an apartment, when newly-minted college graduates join the workforce en masse, tourists take up apartment capacity with short term stays, and local college students begin returning in August.
This year, apartment prices declined throughout the summer, a welcome relief for renters who earlier struggled with post-COVID records.
The RENT BETTA team believes rent declines are due to a weakening regional job market following interest rate increases by the Federal Reserve to cool inflation. Larger companies have laid off over 16,000 employees in New York State in 2023, according to warntracker.com, a site which follows layoff notices, and private employment growth in New York City has slowed to just 2.5% through July 2023 from 8.8% in all of 2022, according to the New York State Department of Labor.
Tepid employment growth is likely not enough to offset new apartment supply, leading to lower rents.
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