Affordability is now becoming a roadblock to home ownership and affordable rentals.
With the median price for a single-family home hitting $460,000 this past May, first-time buyers are being forced to put their home purchase plans on hold. The consequence of these home buyers not being able to afford that first purchase is they are being derailed back into the rental market. On top of that as the pandemic fears and restrictions are lifted, more and more employees are headed back to the office. One of the ramifications of this can be seen with the average monthly rent for a Manhattan apartment crossing the $5,000 a month threshold.
This new record figure is 25% higher than it was back in May 2021, when the median price for a Manhattan rental was $4,050 a month.
Rentals in New York City have become so hot that there are actually bidding wars for such rentals. On a $6,000-a-month rental, one individual was willing to sign a lease to $6,700 just to make sure that they had the rental they wanted.
The Manhattan rental market is even seeing their own version of an inventory crisis occurring, where the vacancy rate at the end of June was 1.9%, representing 6,400 apartments, which is down 46% from 2021.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.