Weber Realty Management expects the burden for residential landlords to lessen in 2022, following a disappointing year for rental prices. Although current rental prices are lower from March 2022 compared to March 2019, the prices at which apartments are getting re-rented, provide a stronger outlook moving forward.
For a Lenox Hill residential rental building that Weber Realty Management oversees, the total rental charges decreased a staggering 23% in March 2021 compared to March 2019. In March 2022, the total charges are 7% lower than 2019, but 21% higher than this time a year ago.
In the same building, the average price for a non-stabilized rental was being charged $1,600 in March 2021 compared to $2,234.33 in March 2019. Currently, the average non-stabilized rent is $2,037.67, which is 9% lower than this month in 2019, but 27% higher than a year ago.
The attitude going forward should be more cheerful as apartments are getting re-rented at higher rates than in 2019. In the Lenox Hill building, an apartment on the top floor was re-rented at a rate 30% lower for 2021. In 2022, the same apartment was re-rented at a price that was 9% higher than 2019 and 57% larger than in 2021.
Weber Realty Management believes that landlords are in the wonderful position where they can renew leases at a higher price or re-rent them at a significant premium. The Lenox Hill building residents are currently renewing leases at least 9.5% higher than current rates and Weber Realty Management believes the same units can be re-rented for a 30% premium. The reason for higher rates for re-rented apartments compared to renewals is due to the high expenses associated with turnover.