A leap in demand for affluent neighborhood properties … rents record the highest growth since 2019

Average rent increased 5.9% in September from a year earlier to $ 3,216 inarea in Manhattan, reported Thursday in a report by real estate appraiser Miller Samuels and real estate broker Douglas Elliman Real Estate. This is the first increase since May 2020 and the biggest since December 2019.

Apartment hunters are taking over units as employers try to drive workers back to their offices in Manhattan, the reason for the jump in demand that has pushed rents to rise again, according to “Bloomberg” and “Al Arabiya”. “. .net.”

The two companies said owners cut just 1.1% of their asking prices last month. in media, compared to 4.5% the previous year. They are also reducing so-called “relocation incentives”: 30% of leases just signed in September came with temptations like free rent or brokerage fees, up from 55% last year.

Relocation incentives are a means of enticement offered by property owners to tenants to encourage them to move into their properties or renew leases.

In turn, Miller Samuel president Jonathan Miller said tenants prefer larger, newer properties, which contributed to the higher average price. Prices for buildings five years old or newer have increased 12% to one media of $ 5,170.

The number of luxury leases, which represent the top 10% of the market, increased by 4.6% from the previous year to 525 contracts. The average rent for those units increased 17% to $ 9,575.

“The economic damage of the pandemic is hitting low-wage workers hard, and this is clearly seen,” Miller said.

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