What you should know
- Median rent for a one-bedroom apartment in New York City is now $ 2,810 and in San Francisco it is $ 2,800.
- Since January, New York rents have risen nearly 20%, but San Francisco rents have only risen about 5%.
- The coronavirus pandemic caused a massive disruption to the New York housing market early on, but demand has changed since then. Rents are not only recovering, they are returning to pre-pandemic levels.
—
NEW YORK – New York City now ranks first as the most expensive apartment rental market in the nation.
The coronavirus pandemic caused a massive disruption to the New York housing market early on, but demand has since changed. Rents are not only recovering, they are returning to pre-pandemic levels.
New York is now a little more expensive than San Francisco, according to a new report from Zumper, an apartment listing website, which has been tracking rental markets since 2014.
Just two years ago, the median one-bedroom rent in San Francisco was more than $ 800 above New York. Median rent for a one-bedroom apartment in New York City is now $ 2,810 compared to $ 2,800 in San Francisco.
Rounding out the top five most expensive rental cities are Boston ($ 2,300) San Jose, California ($ 2,200) and Washington, DC ($ 2,160).
San Francisco and New York were hit the hardest by the pandemic, as offices closed and residents moved to smaller cities or suburbs. Especially in New York, there was a big exit into the sunbelt.
Just 8 months ago, earlier this year, median one-bedroom rent in San Francisco had dropped nearly 24% compared to March 2020, and in New York City it was down nearly 18%. San Francisco, however, was still more expensive than New York at $ 330.
Since January, New York rents have risen nearly 20%, but San Francisco rents have only risen about 5%.
“Tech workers make up a disproportionate share of city residents, and tech companies are more likely to have adopted comprehensive or permanent work-from-home policies. This allows those workers to live wherever they want, and many of them have decided they don’t want to live in San Francisco, ”according to Jeff Andrews, author of the Zumper report.
National earnings
While New York may be experiencing the strongest rebound, cities across the country are experiencing increased rental activity and, in some markets, even bidding wars, which are generally only seen in the sale market. In the spring of this year, New York City rental applications doubled compared to 2020. San Francisco saw a 79% increase in potential renters and Seattle saw a 55% increase, according to RentCafe, another website of rental announcements.
That has raised rents at the national level. A one bedroom apartment has increased 9% year over year; those with two bedrooms were up 11%, according to Zumper. For single-family rental homes, the latest Corelogic reading in June showed that rents were up 7.5% year-over-year, year-over-year, which is more than five times the annual increase in June 2020.
“Ultimately, for prospective home buyers who have been shut out of the market or unable to find a home in today’s limited supply market, independent rentals are overwhelmingly preferred, and still in high demand,” Molly said. Boesel, Principal Economist at CoreLogic.
While New York and San Francisco are the most expensive rental markets, other cities are experiencing massive rent increases. Salt Lake City, Knoxville, Raleigh, Austin and Phoenix top the list of the fastest growing. Those with the lowest rental growth are Chattanooga, Baltimore, Milwaukee, Rochester (NY) and Phoenix.
It is Article was originally published in English by Diana Olick for our sister chain CNBC.com. For more from CNBC enter here.
– .
