Many renters staying put, even at higher prices
It’s come as a surprise to many that rental market inventory is as tight as it is … after all, it is almost summer. This is the time of year when apartments are supposed to open up to new would-be-renters, and yet we keep hearing from countless agents that “there’s nothing out there”. In addition, the apartments that do come available are swooped up in a heartbeat.
Based on our anecdotal research, it seems that many tenants are just not choosing to move this year, and are instead renewing their leases even at slightly higher rents than last year, bucking the flattish year-on-year price trends. Upon further digestion, this makes sense. Last year was the year when anyone who could move did move, as driven by low rents, over-the-top-concessions and plenty of choices. What we lacked in the high volume seasonally gained from out-of-towners starting new jobs in the city, we made up from New Yorkers choosing to swap homes in the search for better value. Understandably, this year they’re sitting put.
This is giving apartment hunters a good deal of anxiety in choosing from among a smaller list of candidates. (The exception to this trend comes if you’re looking for $3,600+ one bedrooms, or $4,500+ two bedrooms, as the ultra-lux rental market is flush with new projects.) Make no doubt about it, however: if you are in the market, you still need to move quickly. We suggest placing parallel offers to make sure you get one of your top choices, rather than dealing with them sequentially.
