National rent hits all-time high in 2022, with New York City leading the way with two-bedroom rent up nearly 30 percent, according to Zumper’s National Rent Report.
Why is rent in the U.S. dramatically increased this year? The answer: inflation.
Inflation has reached its highest level since the early 1980s. In January of 2022, the annual inflation rate accelerated to 7.5 percent, according to the U.S. Bureau of Labor Statistics. Only one year ago, the inflation rate remained at 1.7 percent. However, its impact on costs varies from market to market.
In January, the consumer price index for something as simple as bacon rose by an average of 19 percent. Similarly, the annual U.S. gasoline inflation rate increased by 49.6 percent in 2021. While paying about four dollars per gallon is no happy matter, rising fuel prices are not expected to affect New York City residents to a large degree.
Zumper believes that looking at rental data provides insight into where inflation is occurring the most. Zumper is an online source used by millions of renters to find houses, rooms, condos or apartments for rent. Their research found that a third of the inputs into the CPI are related to housing costs. Zumper’s National Rent Report showed a 12 percent year-over-year increase in the median one-bedroom rent.
In New York, the year-over-year increase in the median one-bedroom rent went up 26 percent, while the two-bedroom rent increased 29.40 percent.
The pandemic caused many New Yorkers to move out of state, causing NYC’s rental market to drop significantly. Exactly two years ago, the empty business districts were an unexpected sight. However, New York was able to rebound. Leasing has skyrocketed across the five boroughs as more people return to the city.
In response to apartment vacancies during the pandemic, landlords offered deals to tenants, with some offering as much as three months of free rent. As New York slowly reopens, the median one-bedroom rent rose by 19.6 percent in 2021. Low rent prices must have been beneficial to many new residents. However, rent percentage increases cause financial issues in lease renewal.
According to Zumper’s rental data, out of New York’s three main boroughs, Manhattan, Brooklyn and Queens, Manhattan suffered the largest drop. In 2022, the rental price for a one-bedroom at $3,100, New York is back to being one of America’s most expensive cities
