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The TikTok video took viewers on a tour of “the smallest apartment building currently existing in New York City.”
Calling it an apartment is an understatement. It’s too big to call it a studio. The room was about 54 square feet, 9 by 6 feet, and had no bathroom or kitchen. It took him less than three seconds for the camera to capture the entire unit. But it’s near New York University, which is a great location for students and young professionals in Manhattan.
Listing agent and TikTok video creator Alexander Bruni told Yahoo Finance that these units are widely popular. A similar unit with the same specifications in the same building was just rented to him in February for $1,290.
These units are like old-fashioned college dorms, he said.
“Let’s keep it real: When you pay room and board at college, they’re also charging you an arm and a leg,” Bruni said.
The glitz and glamor of New York City has always attracted people who want to live in a concrete jungle, and rental prices have long reflected that overwhelming demand. Although rental price growth has slowed over the past 12 months due to a small increase in inventory, rents in New York City continue to rise.
The median asking rent in the city, which includes all five boroughs, reached $3,575 in February, according to listing platform StreetEasy.
“As inventories increase, things will start to improve and the market will only return to a more balanced state of supply and demand,” StreetEasy economist Kenny Lee told Yahoo Finance. “But we still have a long way to go due to decades of historic building shortages and housing shortages.”
Also read: Biden proposes tax credits for first-time homebuyers. Here’s how it works:
Rent growth slows, but problems remain
Asking rents increased 2.4% from $3,500 a year ago, but were a significant deceleration compared to the previous year. New York City rents have experienced double-digit increases in each of the past three years: 17% in 2023, 20% in 2022, and 14% in 2021.
The recent slowdown in growth can be attributed to a slight increase in rental inventory. According to a tracker by StreetEasy, the number of available properties will increase by about 20,000, reaching 240,000 by 2023. Landlords are listing vacant properties more frequently and quickly than usual because of the better economic returns, and New Yorkers are staying longer because of the high cost of moving, Lee said. He said.
“The good news is that inventory is increasing across New York City, potentially opening up more opportunities for renters,” Lee said. “That being said, there will continue to be competition in the market simply because New York City has historically had a housing shortage.”
New York’s housing inventory has been playing catch-up since 2008. According to one study, housing construction declined significantly during the Great Recession, and while job opportunities in the city increased by 23% from 2010 to 2022, housing supply increased by only 8%. yeah. City Inspector’s Report.
Prolonged supply shortages have pushed New York City’s rental vacancy rate to 1.4% in 2023, the lowest in 50 years.
“Population is always growing. Even in New York City, a huge amount of new jobs have been created since the global financial crisis in 2008. But housing supply hasn’t really kept pace,” Lee said. he said.
New York City needs about 40,000 more rental housing units for supply to return to pre-pandemic levels, but more than that to form a comprehensive and balanced market.
In another example of the city’s popularity, the average number of inquiries by property (a measure of rental demand) increased by almost 70% in 2024 compared to 2019, according to StreetEasy.
“Returning to public office is becoming more and more established in the city,” Lee said. “This city has a strong city; [and] A resilient economy will continue to support rental demand. ”
From a listing agent’s perspective, the rental market is far from depressed. Bruni says that good units will be picked up in one day, good units will be picked up in two to three days, and what’s left will be eventually rented out.
He once rented out a secluded two-bedroom apartment on the property for $4,800 an hour. Within seconds of my rental being published, multiple people contacted me. The spacious unit was located in a great location in the East Village and had its own private rooftop.
Bruni said, “Beyond the obvious things like the history, the beauty of the skyline and buildings, the people, the everyday experiences, what really makes New York worthwhile is its opportunities.”
Why not grab the chance now? A good one-bedroom apartment will cost you around $3,500, “if you want a solid place.”
Rebecca Chen is a reporter for Yahoo Finance and previously worked as an investment tax certified public accountant (CPA).
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