As people gradually make their way back to urban cores, rent growth in gateway markets is showcasing the result: As of June, Manhattan rents were up 2.2 percent on a trailing three-month basis, to $3,869, more than double the $1,482 U.S. average. On a month-over-month basis, New York City was among the leading markets for short-term rent expansion, with rates up 1.9 percent, 30 basis points above the national figure.
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In the 12 months ending in May, New York City regained 628,000 jobs, with leisure and hospitality leading growth—the industry added 162,500 jobs for a 54.5 percent increase. As of June, unemployment was 7.7 percent in New York State and 10.6 percent in the city, according to preliminary data from the NYS Department of Labor. Both figures were above the 5.6 percent U.S. rate. While New York City is on the right track, economic recovery is lagging compared to the U.S., and the city’s rebound is expected to be lengthier, with employment anticipated to surpass pre-pandemic levels only in 2024, according to a New York City Independent Budget Office forecast.
Manhattan had 6,026 units under construction as of June, 89 percent of which are in upscale communities. Yardi Matrix expects 2,307 units to come online in the borough this year, below the 2020 figure. Meanwhile, investment sales amounted to $933 million in 2021 as of June, with some 1,500 units sold in the first half of the year.