Since the final quarter of 2022, inflated prices and a severe shortage of housing inventory have become the norm in the New York City rental market. A 2023 rental market boom is a stark contrast to the city's sales submarkets, which have seen a decline in value since the early part of last year, Forbes reports.
As inventory dwindles and landlords raise rents, ongoing interest in the rental market is leading to faster and more expensive transactions, even as the for-sale market stagnates.
In summary, we have a rental market at historic highs in every category and a sales market stabilizing and even turning around for less expensive properties, even as the luxury marketplace remains stagnant. So many factors contribute to today’s market reality: high interest rates, political uncertainty, reduced inventory, pricing pressures (whether up or down), and misalignment of expectations between sellers and buyers. In this environment, rental deals move at the speed of light, while every sales transaction is unique.