Rents are continuing to surge in New York City and that might not change even as the new administration prepares to implement rent control.
In the fourth quarter, the median rent rose by 6.6 percent to $3,585 in the metro. The largest gains by individual borough were seen in Manhattan, at 7.3 percent, followed by Brooklyn, at five percent. Queens showed the weakest, with just a 1.2 percent increase.
Overall, smaller units are seeing more demand, with 0-2 bedrooms leading the way with a 6.8 percent increase. Three or more bedroom units, in comparison, rose by just 3.6 percent.
But aside from the rent gains, another statistic stood out in the Realtor report: renters aren't moving, with 90 percent of tenants staying put, which is well above the national average, according to the report.
Additionally, Realtor said that the move-out rate could tighten even more if a rent freeze is instituted on 40 percent of the city's housing stock, which applies to stabilized units. The home marketplace noted that this creates two problems: one is the deepening of the affordability crisis and the other is families remaining crowded in apartments.
"This heightened scarcity is likely to push rents even higher for the rest of the rental market, fueling competition and bidding wars over an ever-smaller pool of available apartments," Realtor said.
"Over the longer term, the policy's effect on new construction remains uncertain, particularly if expanded rent controls reduce developers' incentives to build."
Realtor noted that Mayor Zohran Mamdani's campaign promise of implementing a rent freeze on all of the city's stabilized units could take effect as soon as October 2026. However, it's unclear if the city's Rent Guidelines Board will vote to do that. Mayor Mamdani has yet to appoint new members to the Board.
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