According to RentJuice Corporation, rental prices in New York City increased during the fourth quarter of 2011, which could prompt a spike in home sales.
The report indicated that monthly rent rose from $3,267 in the third quarter to $3,299 in the fourth quarter – a 1 percent change.
However, even though the increase was marginal, the rise in Big Apple rental rates could be a key indicator that the city's occupancy rate is rising. Subsequently, the lack of supply paired with high demand could prompt more prospective renters to start looking at homes for sale in New York City.
Meanwhile, the most expensive neighborhoods for renting in the city are Central Park South, SoHo, Flatiron, Union Square and Chelsea, the report found.
Additionally, the rise in costs could be attributed to a scarcity of studio apartments available for rent. As a result, more city dwellers may be forced to look at larger one-, two- and three-bedroom apartments.
As the rental rate rises throughout New York City, buying a home as an investment could turn a healthy profit if it's put up for rent in the future.