Due to the high demand for apartments in New York, rent is reaching an all time high with low vacancy rates as well. The average rent per month for a studio or one bedroom apartment is approximately $2,000 to $3,900 today. For example, in Manhattan the average rent now is approximately $3,400 each month. Why is rent soaring in New York? According to some financial analysts because the economy is improving and companies are hiring, people are being careful about purchasing homes with an unpredictable economy.
Lenders have made it difficult for consumers to obtain home loans with stricter requirements. Therefore, people are renting in New York more than ever before. Finding an apartment is very difficult and reasonable priced rents are not available. As the demand for apartments increases the prices rises also. The apartments in New York that are considered low budget in other parts of the United States are extremely expensive for smaller square feet of living space in NY.
The vacancy rates fell to a 4 year low of 0.96% during 2011 according to the Crain’s New York Business News. The average cost for a pent house suite apartment can range from $10,000 or more each month. A studio apartment can range from $1,700 to approximately $2,500 in various areas of New York.
There are more rentals in New York than homeowners. As the economy improves in New York the rates are expected to continue to rise and the vacancy rate is expected to decrease. Individuals planning to move to New York have to consider the availability of apartment rentals. Finding a place a rent is very difficult and competitive. Thousands of people are currently looking for an apartment to rent.
The cost of rent is soaring in various destinations in New York, such as Manhattan. The requirements to lease an apartment are stricter, requiring huge deposits alone with application and processing fees. The high demand for apartments and low vacancy rate makes it impossible to locate an apartment for rent in New York. Due to low home purchasing power the demand for rentals has risen dramatically.
At the end of the first quarter of 2012, the new leases percentage rose substantially according to Bloomberg Business Week News. A one bedroom apartment in Manhattan can cost a tenant roughly $3,900 each month. The cost for a two bedroom apartment is estimated at $5,900 and up and a three bedroom apartment can cost over $6,000 each month to rent.