During the fourth quarter of 2015 Manhattan residents paid a median rent of $4,374, which is the highest average rent in the nation. Forbes staffer Erin Carlyle takes a look at Manhattan and other markets that had the unfortunate distinction of making Forbes 2016 list of worst cities for renters.
Fortunately, Manhattan has seen prices stabilize with rents rising just 5.6% year-over-year. One of the key factors for the high rents is a very low vacancy rate:
When vacancy rates are tight—as in Manhattan (1.8%), Oakland (2.8%), Los Angeles (3%) or Boston (2.8%)–landlords have the upper hand. “We’ve seen markets with hyper low vacancies accelerate their rental price growth more quickly,” says Nadji. Further compounding the low vacancy problem, “People tend to stay put because they don’t have as much choice,” Nadji says.