NYC Could Become Nation's Priciest Rental Market: Report

NEW YORK CITY — New York City could soon overthrow San Francisco to become the most expensive rental market in the United States, a July rent report from Zumper found.

The city's median rent for a one-bedroom apartment — $2,680 — is currently the second-highest in the nation, Zumper's National Rent Index found. The price is only $40 behind San Francisco's $2,720, and New York City has seen much more growth than San Francisco in recent months.

The city posted a 4.3 percent month-over-month gain in median one-bedroom rent in July, making prices just 5.6 percent lower than they were this time last year, according to Zumper's report. In comparison, San Francisco prices are currently down 15 percent compared to last year.

Nationwide, Zumper's rent index posted a 7 percent year-over-year increase in the cost of a one-bedroom apartment, and an 8.7 percent increase in two-bedroom costs.

"There are a number of possible reasons rent is rising so rapidly," the Zumper report reads. "With the COVID vaccine widely available, renters are adapting to a new normal and moving to accommodate that. Lower wage workers who lost their jobs in the pandemic are finding employment again as cities have opened up, allowing them to move out of friend’s and family’s homes."

The hyper-competitive sales market is also keeping prospective buyers – particularly first-time buyers with growing families – in the rental market, the report said. That trend helps explain why two-bedroom rent growth is outpacing the rate of one-bedroom growth.

Zumper's full report can be found here.