A Rental Frenzy Fueled by Fear, Shortage, and Shifting Expectations
“Today’s New York City rental market is no longer just competitive — it’s chaotic. What we’re seeing this summer is the collision of several major forces: record-low vacancy, relentless demand, post-pandemic migration patterns, and reactive legislation. At Duke Properties, we’re acutely aware that the city’s renters are not just paying more — they’re sacrificing time, flexibility, and peace of mind just to secure a lease.”
Surging Rental Crisis: Bidding Wars Are No Longer a Luxury Market Phenomenon
“The stories of renters like Daniela Mora and Abby Paradise — touring dozens of units, engaging in bidding wars, paying thousands above asking — are becoming the norm, not the exception. Bidding wars used to be associated with high-end property sales, not one-bedroom rentals in Kips Bay or Astoria. This isn’t healthy market behavior. It’s a pressure cooker created by a deep lack of inventory and a system that hasn’t adapted fast enough to today’s demand.”
Surging Rental Crisis: Legislation Like the FARE Act Has Ripple Effects
“The FARE Act, intended to relieve renters of the burden of broker fees, has inadvertently added fuel to the fire. Landlords, in response, are embedding those costs into higher asking rents or simply pulling listings from public view. As a result, many apartments are now harder to find, pushing more renters into off-market bidding scenarios. This legislation is a prime example of how well-meaning policy can create unintended consequences without structural reform.”
High Mortgage Rates Are Keeping Would-Be Buyers in the Rental Pool
“High interest rates are freezing the entry-level buying market. Many who would normally transition from renters to first-time buyers are instead renewing leases or staying longer in rentals — further tightening supply. It’s a domino effect. With fewer exits from the rental pool, the competition for available apartments increases exponentially.”
Landlords and Developers Must Step Up with Smart, Scalable Housing Solutions
“At Duke Properties, we believe the solution starts with supply. We need to accelerate the development of quality, mid-market housing — especially in neighborhoods with room to grow and infrastructure to support new density. Creative conversions of underused office space, adaptive reuse of industrial zones, and strategic upzoning can all help relieve pressure. But beyond units, we must build communities people want to live in, with amenities, access, and long-term affordability.”
Flexibility and Fairness Will Be the Keys to Restoring Balance
“This is a moment of reckoning for NYC housing. Flexibility, like renters accepting incomplete renovations or acting fast with above-ask offers, has become essential — but it shouldn’t be the standard. We owe it to New Yorkers to restore some sense of fairness and predictability in the rental process. That means collaboration across the public and private sectors. At Duke, we’re committed to being part of that solution — not just as property owners, but as advocates for a more balanced market.”
Albert Dweck
CEO, Duke Properties