“Prices are moving sideways,” Jonathan Miller, president of Miller Samuel, told Bloomberg. “Where there is growth or decline, it’s nominal.”
Despite the drop in rents, Manhattan’s rental market is far from sluggish. In May, 7,085 new leases were signed, a substantial increase of nearly 41% from a year earlier. This uptick in activity also coincided with a 28% rise in available listings, which has helped to keep rent prices from escalating.
Miller believes that high renewal prices set by landlords are driving existing tenants back into the market. With mortgage rates hovering around 7% in May, many potential homebuyers are choosing to rent instead.
Looking ahead, Miller expects these trends to continue through the summer, with only modest increases in rent prices as new tenants, including students and recent graduates, look to secure apartments before the fall.
“I’m not anticipating runaway rents, but I don’t see them correcting much either,” he said.
