Bank-Breaking Rents Broke Records Last Month In NYC: Study

NEW YORK CITY — Break-the-bank New York City rents are breaking records, too, a new study shows.

A comparison of August 2021 and 2022 found Manhattan's average monthly rent jumped to 28 percent $5,246 and Brooklyn's average leapt 24 percent to $3,976, a recent Douglas Elliman study found.

Skyrocketing rents also appeared in Northwest Queens, where rents increased 14 percent from an average of $2,960 in August 2021 to $3,368 in August 2022, the study shows.

One word appears 19 times in the report: luxury.

In Manhattan, net effective luxury median rent increased 34 percent to a record $11,415, about 46 percent higher than before the pandemic.

"Luxury buyers were pushed into the rental market due to the spike in mortgage rates and drop in affordability," the analysis states.

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In Brooklyn, the luxury median rent surged 20 percent to a record $7,372, 18 percent higher than pre-pandemic levels.

And, in Queens, the luxury rental market represented the top ten percent of new leases with rents beginning at $5,200 during the month.

The analysis comes as New York City faces its largest stabilized rent hike in nearly a decade.

The Rent Guidelines Board voted in June to increase rents by 3.25 percent on one-year leases and 5 percent on two-year leases.

The increases will be effective for new leases starting Oct. 1.

The Douglas Elliman findings spurred the Legal Aid Society to issue a statement calling on Gov. Kathy Hochul for help.

“Tenants throughout New York City in unregulated units are now experiencing first-hand what happens when landlords have complete control over lease adjustments," said Legal Aid chief attorney Adriene Holder.

"Rents double, and people lose their homes.”

The public defenders group argued now is the time to enact “Good Cause” legislation to protect tenants in unregulated apartments from unwarranted evictions.

"Albany may be in recess until next year, but Governor Hochul could use her powers to convene a special session for lawmakers to advance this needed measure," Holder said.

"Anything short of immediate action would amount to a dereliction of duty from our local elected officials.”