“Though some landlords may be easing back on rent hikes, the usual annual income requirements of 40 to 50 times the monthly rent still stands. If your income (or you and your roommates’ combined incomes) falls short,line up a guarantor in advance or shell out about a month’s rent for a professional guarantor service like Insurent.”
So, how much is this going to cost?
First, the good news. After months–even years–of non-stop price hikes, rents have evened out a bit, and in some areas, even went down slightly over the winter. This is partly due to competition from what Jonathan Miller, president of appraisal firm Miller Samuel, calls “record activity” in the sales market, and also because we may have finally hit a ceiling as far as how much people are willing to pay.
“It gets to the point where you can only increase things so far before you price everyone out,” says Jason Saft, the director of landlord services for real estate brokerage Urban Compass.
Of course, rents typically go up in the warmer months, so this reprieve may be short-lived.
Andrew Barrocas, CEO of real estate brokerage MNS, predicts “continuous rent growth” in Brooklyn. While developers are building rental projects as fast as they can–listings shot up 74 percent in the past year, according to data pulled from StreetEasy–they’re not meeting the demand from renters.
Miller says Manhattan rents, meanwhile, are going to remain “stable” but expensive for the rest of the year. In March, it cost an average of $3,200 to rent a Manhattan apartment, only a 0.2 percent increase from last year,and $2,900 to rent in north and northwest Brooklyn, a 13 percent jump from the same time last year, according to the April market report from Miller’s firm.
Brooklyn’s priciest areas are still Williamsburg and DUMBO–where a one-bedroom will run you an average of $3,224 and $3,925 per month, respectively, according to MNS. Farther-flung Bay Ridge is a far cheaper option: an average one-bedroom went for $1,652 a month in March, the report says.
In Manhattan, it’s worth considering how much you’re willing to splash out for the benefit of having a doorman. If you’ve got someone manning the front desk, you’d pay over $700 a month more–$3,985 versus $3,226 for your average one-bedroom, according to MNS’ numbers.
Though some landlords may be easing back on rent hikes, the usual annual income requirements of 40 to 50 times the monthly rent still stands. If your income (or you and your roommates’ combined incomes) falls short, line up a guarantor in advance or shell out about a month’s rent for a professional guarantor service like Insurent.