High interest rates and economic uncertainty have fueled the rise of luxury rentals in New York City.
The sector’s rising popularity is leading to a surge of properties coming online to meet the demand, the New York Post reported. With some large projects still in the development pipeline, Compass broker Vickey Barron told the outlet the market for high-end rentals is tight, and available units go fast.
Aurora Capital Associates is weeks from the launch of 111 Charles in the West Village, a 19-unit building designed by Morris Adjmi. The amenities are similar to those seen in a luxury condo building, such as a gym, a residents’ lounge and a children’s playroom. One-bedroom rents range from $8,000 all the way up to $40,000 for the penthouse.
Other prominent luxury rental buildings emerging from the pack include Avery Hall’s One Boerum Place in Brooklyn and Anagram Columbus Circle on the Upper West Side.
The market is likely to stick around with ongoing concerns over the economy keeping some luxury buyers less than eager to take the buying plunge.
“Some potential buyers are spooked and don’t want their money tied up,” Douglas Elliman agent Kirsten Jordan told the Post. “The financials of a rental make more sense.”
The trend has powered the rise of median rents in the city. Even as the national rental market has shown signs of cooling, the median rent in the city keeps on rising, in part pulled up by the influx of wealthy renters.
In April, Manhattan’s median rent was $4,241, according to a report by the appraiser Jonathan Miller for Douglas Elliman. Brooklyn and Northwest Queens also saw all-time high median rents in April.
— Holden Walter-Warner
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