Zillow calculated the average rents in the nation’s biggest metropolitan markets for 2014, and the NYC area doesn’t even rank in the highest five (pretty not bad for the country’s most livable city). As has been reported previously, California rents topped the list, occupying four out of the top five spots. Curiously, San Francisco’s average ($1,598), which in previous months had beat out New York’s ($1,228), was actually the second highest — the region with the highest rents was actually San Jose, which was calculated to have an average monthly rent of $1,807.
It’s worth noting that this analysis folds New York City into “New York-Northern New Jersey”, which is made up of markets arguably different enough to warrant individual distinction — intra-borough gradients can be significant (e.g. Brooklyn), let alone interborough or intercity differences. Manhattan’s luxury rental market naturally comes with high profile transactions; the Pierre Hotel for instance attracted an international tenant who signed a month-long, $500,000 lease in December for the 39th floor, and a $150,000/month suite on the 10th floor.
That said, New Jersey’s northern metropolitan region includes Jersey City and Hoboken, which especially on their New York City waterfronts, have been enjoying continued economic growth marked by significant spates of new construction — introducing much needed retail and commercial space — so much so that a proposed PATH train service cut was met with outcry. The proposed cut would eliminate night service, and allegedly save $10 million a year; however, proximity and accessibility to Manhattan are cited as main points in the area’s attractiveness (commute times are comparable to living in outer boroughs); Jersey City’s Exchange Place, one stop away from FiDi, has been referred to as Wall Street West. The change would also put a recently approved Hoboken rail yard redevelopment (in the same vein as Hudson Yards, albeit on a likely smaller scale) in jeopardy.
