New Yorkers face record-high rent as the housing market recovers from COVID-19 pandemic

Rent in the city that never sleeps is seeing a staggering jump in the post-Covid market. With the economy still dealing with the after-effects of the pandemic, in New York, rent has seen a significant jump.

A Reuters article reports that Gerri Weinberger received a notice of a rent increase from $1,833 to $2,500 for her upper east side studio apartment in New York City. In spite of her attempts to negotiate the rent, Gerri will now have to move out of her Manhattan apartment and shift to Jersey City, where the rent is a little bit more affordable.

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She told Reuters that when she tried to negotiate her landlord said "this is the market price," said Weinberger.

"They said, you know, rents have gone up 40 per cent even in Brooklyn and in even Harlem, all these places. So, that there was nothing I could do. And if I had to leave, then, oh, well, because they have other people who want to live here."

Kenny Lee, an economist at StreetEasy says "A lot of renters are being priced out of their own home as the landlords seek to reverse the deals they offered during 2020 and 2021," adding that renters should expect further hikes at least through this summer.

"I think New York City has seen a later comeback compared to the rest of the United States. The rent price increases in New York City have not really peaked yet, and given how low the current inventory is for the rental market, I think the rents should continue to increase at least a few more months through the end of summer, or perhaps into early fall," predicts Lee.

According to Corey Cohen, the founder of the real estate company The Roebling Group, purchasing is one method to get out of the rut.

However, not everyone can afford hundreds of thousands in down payment as well as the extra expenses brought on by rising mortgage rates.According to a report by the MagnifyMoney Savings Index, over one in five Americans didn't make any financial investments in 2021 and only one in six homes reported having more savings now than before the outbreak, according to Bankrate, and 25 per cent had no emergency fund at all.

(With inputs from agencies)

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