RENTBETTA.com reports a significant decline in NYC average rent by -4.6% in August 2023, signaling a cooling housing market amid broader economic slowdown.
New York City, New York, United States, 6th Sep 2023 – RENTBETTA.com, a new site offering no fee New York City apartments directly from property managers and landlords, announces average rent decreased -4.6% sequentially in the month of August, a welcome relief for renters.
- Average rent in August decreased-4.6% m/m to $5,290
- Average rent decreased -2.3% y/y from August 2022
- Median rent is at the lowest in 6 months
- Continual rent declines throughout the summer, when rents usually reach their seasonal peak, indicates a slowdown in the NYC economy
New York City’s median rent, a measure which is less affected by changes in the most and least expensive apartments and better shows underlying trends, decreased -6.2% sequentially in the month of August.
Median New York City Rents for No Fee Apartments
- August, 2023 $4,600 -6.2% sequentially
- July, 2023 $4,904 -2.0% sequentially
- June, 2023 $5,005 -0.2% sequentially
- May, 2023 $5,016 +2.6% sequentially
- April, 2023 $4,887 +3.0% sequentially
- March, 2023 $4,745
Median rents as of month end. Source: RENTBETTA.com
New York City Rents Decrease through Summer After Post-COVID Records
August’s rent decline is notable due to its accelerating trend lower during a time of year when rents typically increase. The summer is typically the most expensive time of year to rent an apartment in New York City, as newly-minted college graduates join the workforce en masse, tourists take up apartment capacity with short term stays, and local college students begin returning in August.
The RENT BETTA team believes rent declines this summer are due to a weakening regional job market following interest rate increases by the Federal Reserve to cool inflation. Larger companies have laid off over 16,000 employees in New York State in 2023, according to warntracker.com, a site which follows layoff notices, and private employment growth in New York City has slowed to just 2.5% through July 2023 from 8.8% in all of 2022, according to the New York State Department of Labor.
Tepid employment growth is likely not enough to offset new apartment supply, leading to lower rents.
About RENT BETTA
RENTBETTA.com eliminates broker fees by connecting renters directly with property managers in NYC that let you rent directly from their leasing offices. Users can book a tour and apply for any apartment on the site and will be connected directly with the building owner, not a broker.
Email media@RENTBETTA.com for early access to our original data on the NYC rental market, before similar reports are available from competitors.
Contact Person: Media team
City: New York City
State: New York
Country: United States
Release Id: 0609236123