The Blubber

The average Manhattan rent just hit a new record of $5,588 a month.

In over 20 years, the national average rent-to-income has reached its highest number ever at 30%. This means that out of a normal US citizen's income, 30% of it will go directly to rent.

Places like New York City have seen their rent rise by a whopping 19% in October, with the average Manhattan rent rising from $2,804 in February to $3,998 in August. This was compared to the 12.3% national average during that time.

Per Moody data, it was seen that the RTI was up by 1.5% in Q4 of 2022, which saw the growth rate keep constant throughout the third and fourth quarters. The increased mortgage rates have made it harder for renters to transition into buyers.

The report noted that the rent surge happened as demand increased, making it harder for renters to afford rent amid their income. From 2020 to 2021, average rents shot up by 20%, while median income only increased by 6%.

New York saw the highest rent-to-income percentage at 68.5%, meaning out of an average person's income, 68.5% would go straight to rent. Miami closely followed this at 41.6% RIT.

Some states saw a drop in the rent-to-income ratios, with Maryland dropping by 0.62%. Oklahoma followed closely at 0.49%, and Arkansas saw a decline of 0.16%.

In January, a report revealed that San Francisco commercial real estate vacancies shot up to 27.2% after continuously increasing for 12 quarters. This meant less commercial space was being rented, with the largest annual jump in Q4 2020 at 16.9% compared to Q4 2019 at 3.7%.

Despite the drop in real estate occupancy, sublease reportedly increased 8% quarter-over-quarter.  This meant that big tech companies were not leaving but rather downsizing.

See flow at unusualwhales.com/flow.

Other News:

• NYC Rent has Risen 19% in the Last 12 Months Compared to the 12.3% National Average
• San Francisco Commercial Real Estate Vacancies at 27.2% After 12 Quarters of Continuous Increase