D
aniela Mora, a 26-year-old stand-up comedian and content creator, found the hunt for a Manhattan one-bedroom rental to be a daunting task this year. To secure a new lease by June 1, she spent her May scouring StreetEasy at all hours and attending open houses across the city.
"It's like having a second full-time job," Mora said of the process. She toured nearly 25 apartments, applied to two, and got into a bidding war over one. The experience was not unique to Mora; many New Yorkers are facing intense competition in the rental market this summer.
Historically high rents, low vacancy rates, and record-breaking bidding wars define this year's red-hot summer rental market. According to a report from Miller Samuel and Douglas Elliman, rent in Manhattan reached an all-time high of $4,625 in June, with new lease signings outpacing inventory. A staggering 25% of Manhattan tenants paid above the landlord's list price, a record share of bidding wars for June.
The city's FARE Act, which banned broker fees and went into effect in June, has contributed to the spike in rents and bidding wars. Landlords responded by building the cost of broker fees into rents, leading to an increase in off-market listings and a depletion of public inventory. Manhattan rental inventory fell by 12.4% from May to June.
Abby Paradise, a 24-year-old jewelry salesperson, and her roommate faced similar challenges in their search for a two-bedroom apartment in Manhattan. Despite attending at least 30 tours and offering above the asking price on two different apartments, they lost out on both bidding wars. They eventually found an off-market, rent-stabilized one-bedroom on the Upper East Side after hiring a broker.
The competition for desirable units throughout NYC remains fierce, despite increases in new housing supply. For those willing to take risks and be flexible, however, there may be opportunities to find a dream apartment. As Mora's experience shows, sometimes it takes a bit of creativity and perseverance to secure the perfect place.
