House rental rates in some of the wealthiest neighborhoods of New York City have surged by over 60% since the COVID-19 pandemic began, putting even high-income earners in a tight spot.
According to a report, affluent neighborhoods such as Tribeca and SoHo have experienced the most significant rent hikes, with a whopping 60% increase from 2020 to 2025. The median rent in Tribeca is now approximately $8,000 per month.
Other neighborhoods like Greenpoint and Williamsburg have also seen rents cross the $5,000 threshold, while Long Island City rents have jumped to over $4,500.
Chelsea and Dumbo have seen rent increases of 50% or more. Overall, citywide rents have jumped 27% between 2020 and 2024, surpassing the rent increases in Los Angeles, Boston, and Washington, DC, reports Bloomberg.
High-income renters, including professionals from the finance and arts sectors, are now grappling with bidding wars that were once only a concern for homebuyers.
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As per the report, it has been estimated that at least 65,000 households earning between $100,000 and $300,000 are now spending a third or more of their income on rent, marking a significant increase from four years ago.
Economists suggest that the surge in rents can be attributed to landlords trying to recover from losses incurred during the COVID-19 pandemic, high interest rates deterring potential buyers from purchasing homes, and a wave of luxury development.
For example, Long Island City added nearly 7,200 apartments from 2020 to 2024, mostly in high-rise buildings, with new-development median rents being about $625 a month higher than typical neighborhood apartments.
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