Median rents on new leases across many New York City neighborhoods reached record highs in April, according to an article published Thursday by Bloomberg.
Record high rents in NYC were previously hit in April 2023, but May appears to be following a similar trend, according to reports from Bloomberg. Manhattan, Brooklyn, and northwest Queens are worst-hit by the price hikes, which rose between 8.1% to 15% , with Astoria and Long Island City also increasing nearly 13% since 2022.
“There’s a lot of demand and it’s not just for one type of apartment,” president of appraiser Miller Samuel Inc., Jonathan Miller said of the situation. “This is an equal-opportunity pain-maker for tenants.”
Almost every single type of apartment saw prices increase in the last year, prompting many new renters to avoid the city. In fact, new rental rates in April dropped 20% compared to the previous month, Bloomberg noted.
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@michaeljburry nails it again… so wild https://t.co/umbhH3s5Si
— KAY SMYTHE (@KaySmythe) March 13, 2023
So, what does this mean for Americans outside of NYC? Property prices are already horrifically over-inflated. When combined with ridiculous interest rates, we are clearly heading into a period of housing stress. Many new buyers will see their homes depreciate in value, meaning that refinancing already overpriced mortgages is going to be difficult.
Some home buyers already lost more than $100,000 in purchasing power in one year thanks to the ongoing mortgage crisis. (RELATED: ‘I Brought Some Cyanide’: Another Billionaire Investor Predicts Devastating Economic Collapse)
Back in January, Goldman Sachs reportedly sent a note to clients saying that four cities would likely see a 2008-size crash in the housing market. NYC was not on the list, but the current bubble, combined with diminishing quality of life within the city, could wreak havoc in the coming months and years.