In New York City, the second most expensive major rental market in the US, the median asking rent for one-bedroom apartments fell 3.7% from a year ago to $2,870. For two-bedrooms, it fell 5.0% to $3,230. Since the peak in March 2016, asking rents have plunged respectively 14.8% and 18.8%. A modicum of relief for renters, a headache for landlords, a sign that new supply from the construction boom is having an effect, and proof that even in New York, you can inflate rents only so far.
The data is based on asking rents in multifamily apartment buildings, gleaned from “over one million active listings” that Zumper aggregated in its National Rent Report. Not included in the data are single-family houses and condos on the rental market. Also not included are incentives, such as “1 month free” or “2 months free,” which reduce the effective rent for the first year by 8% or 17%.
The data includes asking rents from new construction. In many cities, high-rise apartment and condo buildings have sprouted like mushrooms. These units are now showing up in large numbers on the rental market, and landlords need to fill them – hence more pressure on rents.