Manhattan rents have been increased at record highs for six continuous months.

Manhattan Rents

According to the monthly report, the average rent for a Manhattan apartment rose to $4,150 a month in July, which is 29% high than a year ago. Compared to June, it rose by 2.5%.

Manhattan Apartment

Manhattan Rents- record high

Average rents of more than $5,000 per month also hit a record high of $5,113 per month last month.

Jonathan Miller, Miller Samuel's President and CEO said rents are likely to rise further in August, marking the final month of the annual rental season.

Manhattan Rents- Miller

Manhattan Rents- Inflation

To keep inflation under control, the Federal government has violently raised interest rates.

However, the central bank strikes a delicate balance: if it increases highly, it can push the economy into recession, leading to layoffs and headcount drops.

Manhattan Rents- central bank

Manhattan- unemployment

If unemployment worsens, demand for Manhattan housing could fall as the population doubles or moves out of the city, easing pressure on prices.

An increase in the rates of mortgages is also affecting the rental market.

Mortgages Rates

Mortgage rates have risen sharply from the start of 2022, with average rates for 30-year fixed-rate mortgages rising from 3.22 percent in January to 5.81% percent in June and from 5% to 5.5% in July.

Miller said rising mortgage rates are putting pressure on the rental market as many potential buyers are unable to buy a home and put their purchase plans on hold.

Manhattan Rents- market