Category Archives: Economy

Record High for Rentals in Manhattan

Economy, Real Estate,

Have you always dreamed of living in the big city? Now may not be the time.

For the sixth month in a row, apartment rental prices in Manhattan have reached a record high. With the median rate last month at $4,150 per month, rentals have climbed 2.5% since June and a whopping 29% from just one year ago. Renters are currently shelling out an average of $5,113 per month.

According to Jonathan Miller, president of Miller Samuel Real Estate Appraisers and Consultants, rent prices are expected to soar even higher this month as August is generally peak season. It is unclear what to expect from September, though. If the Federal Reserve continues to raise interest rates with the hope to curb inflation, the possibility of a recession will become more of a reality. In this situation, layoffs would be expected and demand for Manhattan rentals may decline, which would likely result in an ease on prices. However, Miller expects that rent prices will continue to climb till the year’s end, perhaps at a slower rate.

While rentals are in high demand, the dream of many to become homeowners is being put on hold. Rising mortgage rates are making the possibility of buying now impossible for many. With the current average rate on a 30-year fixed-rate mortgage now at 5.81%, families are opting out. With less buyers, the rental market is seeing extra added pressure, contributing to the increase in rates.

As the economy continues fluctuate in so many areas, the housing market will swing along accordingly. With the end of year gradually approaching, it will be interesting to see what develops. As Miller has asserted, “…it is going to come down to external factors like unemployment and hard landing to see what happens next.”

Travelers Face Soaring Airfares

Economy, News, , ,

With the shining sun and Covid restrictions letting up, Americans are eagerly booking vacations and flights for the upcoming summer months. Tired of regulations and staying at home, people are excited for a newfound freedom they’ve missed. Together with the enthusiasm to travel, experts warn of increasingly hefty airfares.

According to the Associated Press, the expected number of travelers this summer is higher than in pre-pandemic times. Prices of domestic flights are selling at rates 24% higher than during this season in 2019 and 45% more than this time last year. Similarly, international flights are going for 10% more than in 2019.

So, why the drastic increase?

According to airlines, there are a few factors. First and foremost is the rise in jet fuel prices. Additionally, there are fewer flights available for booking and many travelers interested in purchasing tickets. In the words of Hayley Berg, an economist for Hopper, “We have more travelers looking to book fewer seats, and each of those seats is going to be more expensive for airlines to fly this summer because of jet fuel.” Lastly, there is a major decrease in staff numbers in comparison to before the pandemic, and this often results in canceled flights.

Bottom line: If you are eager to make up for missed time during the Covid-19 restrictions, go for it – but be prepared to pay the price!

Three American-based Economists Share Nobel Prize

Economy, , , , ,


The Nobel Prize for Economics went to three US-based academics: Joshua D. Angrist, David Card, and Guido W. Imbens. Card earned his award for work on labor economics, while Angrist and Imbens contributed to the analysis of causal relationships.


Card, 65-years old, is a University of California-based professor of economics, while his partner, Angrist, is 61 and the Ford professor of economics at the Massachusetts Institute of Technology. Imbens, the youngest of the three at 58, is based at the Stanford Graduate School of Business, where he is also a professor.


According to the Nobel Prize committee who chose the laureates, the three winners ” provided us with new insights about the labor market and shown what conclusions about cause and effect can be drawn from natural experiments.”


The committee added that the approach the researchers took to exploring social questions had “revolutionized empirical research.”

Chicago Business Leaders Urging Companies to Bring Their Workers Back to the Office

Economy, , ,


Business leaders in Chicago want downtown full again. They say it’s safe, and the economy needs them. Getting people back to the office was the topic of a roundtable discussion with World Business Chicago and the Building Owners and Managers Association of Chicago. They emphasized that the city needs those 600,000 that used to populate the downtown area.


“Even if you can work from home, and many have and have figured it out, think about the shops you walk by from the train to the bus to get to the office and how many of those people need us,” said David Casper, CEO, BMO Financial Group. “As a bank that promotes commerce, it’s a bit of our responsibility.”


Some companies are considering bringing their office workers back after Memorial Day. Others are continuing with a hybrid schedule and work towards more people in the office later in the year. One problem is that many workers don’t feel safe on public transportation.


One key piece of the puzzle of getting people back to the office is increased vaccination rates. Illinois has about a 35% vaccination rate, but with safety protocols in place and financial incentives, downtown workers are getting vaccinated at a higher rate than the state in general.

New York Economy Showing Signs of Rebound

Economy, , , , ,

When 25-year-old entrepreneur Neil Hershman decided last year to open a flagship branch of Dippin’ Dots/Doc Popcorn in midtown Manhattan, he made the decision with a generous dose of nostalgia.

“I grew up like many others eating Dippin’ Dots exclusively at an amusement park or sports game,” Hershman told QSR Magazine, a journal covering the food service industry. “I wanted to bring that same experience to the millions of young adults and families traveling through Manhattan daily.”

Nostalgia aside, however, the decision to invest time and money in the city was a business call and a vote of confidence that the city’s economy will soon begin to bounce back from the downturn that accompanied the coronavirus last year.

The new store, which is scheduled to open in early April at 1 Madison Avenue, adjacent to Madison Square Park, is not the only indication that things are looking up for New York. The real estate sector, too, is showing more signs of vitality than it has in years.

“It is a reach to say the city’s property markets are roaring back,” the Financial Times reported in early March. “But the beast is certainly stirring. The first two months of 2021 have been the strongest opening to a year in Manhattan since 2015, the height of the market. February alone saw more new deals than any single month since May 2013.”

Even more significant, said the FT, is the fact that the economic growth appears to be led by wealthy New Yorkers eager to get back to museums, Broadway, sporting events, ballet performances and more.

“I’m optimistic on the eventual return of normalcy to New York City within the next 24 months,” concluded Neil Hershman.