Even though there were massive drops in rental prices throughout the course of 2020, New York City remained one of the nation’s most expensive markets.
Zumper recently released their monthly rental report for December 2020. According to their findings, throughout the final month of 2020 the national one-bedroom median rent remained flat at $1,224 last month, while the two-bedrooms increased by 0.3% to $1,491.
Like in months past, New York City remained the second most expensive rental market in the country, following San Francisco. The price of a one-bedroom apartment in New York City decreased to $2,450, a 2.4% drop month-over-month and a 19.7% drop year-over-year. The price of a two-bedroom apartment also fell to $2,630, a 6.1% decrease month-over-month and a 22.4% drop year-over-year.
Zumper noted that due to price trends that occurred in 2020, previously hyper-expensive markets such as New York City be overtaken by lightning fast-growing cities like Newark, New Jersey, which had an 8.1% spike in rental prices for one-bedroom apartments, though there are reasons why it could not happen as well. The growth of places like Newark is likely attributed to renters flocking to these places from nearby, hyper-expensive markets, like New York City, Zumper says.
The report also posed the question of how much would rental prices in New York City have to drop to attract more renters from Newark, or what would happen in New York City and Newark had the same prices. Zumper will be looking out for answers to such questions as they begin to track the market in 2021.
Read the full report at zumper.com.
