economy and politics

US: New Yorkers Suffer Historic Rise in Rental Prices

US: New Yorkers Suffer Historic Rise in Rental Prices

First modification:

In July 2022, for the 17th consecutive month, rentals in the United States reached an all-time high with a 12.3% increase in prices. Large cities such as New York, Boston, Chicago and Orlando experienced the largest increase, according to reports from the US portal

Rent prices have risen across the United States, but especially in cities where they were already unaffordable, like New York. And it is that as the leases of the pandemic era expire, the tenants of the Big Apple face a historical increase in prices that, in some cases, exceeds 5,000 dollars per month, 20% more than in the same period last year.

For its part, the national rent in July stood at an average of 1,879 dollars for the month of July, 12.3% more than a year ago, causing US renters to perceive an increase in their leases of around 300 dollars per month over the previous value.

Cathy Lynch had to leave the house where she lived in June. When she came to her during the pandemic, her landlord told her that she would keep her price, or maybe, at most, raise her rent by 8%.

But when he wanted to renew his contract two months ago, the owner told him that the increase would be 65%, reaching $2,800 a month. “I did not feel able to pay for that alone, it is impossible,” he explained to France 24.

New Yorkers have it increasingly difficult to find options, as confirmed by the Real Estate broker, Gia Ann Curatola, who assures that the war in Ukraine, the increase in interest rates and inflation have created great uncertainty in the real-estate market.

Americans now prefer to rent rather than buy, and demand has doubled, he said. “That contributes to very high rents because there is an increase in demand without at the same time there being an increase in supply,” she added.

The situation is such that even the New York City Council has reinforced the promotion of the affordable housing lottery offered by the city. “After the pandemic, the new prices of apartments and buildings have had a great impact and this has always been an option that has been there, it just needs people to find out,” says Grabriel Di Gennaro, a volunteer at the Fundavenyc foundation.

A better outlook in the coming months?

According to experts, the situation could start to improve as soon as next month, when rents are expected to start to stabilize.

Danielle Hale, chief economist at the US portal, considers that “July’s data shows that rental growth is stabilizing at a relatively slower pace than in 2021.”

The quarterly survey of the real estate rental and sale portal Avail also showed that prices remained stable in the second quarter compared to the previous quarter after the high costs of January and April.

With AP and local media.

Source link