Rents in Manhattan keep setting records. The median rate is holding at an all-time high of $5,295 a month, while the average has come close to $6,655 — about 10% higher than a year ago. The reason is simple: there are not enough homes. According to the city's official housing survey, the rental vacancy rate has dropped to 1.49% — the lowest since 1968.
In a market like this, buying to let is stronger on yield, but the form of ownership carries a catch: a co-op sharply limits subletting, while a condo lets out freely. For rental income a condo almost always suits a foreigner.
