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If you want to know how to fix America’s housing crisis, look no further than the sharp division playing out along the Hudson River.
In Manhattan, where years of heavy regulation, strict zoning regulations and a vacancy rate of less than 2% have stopped new development, rents have recently entered history. But in neighboring Jersey City, a massive post-pandemic construction boom has forced landlords to compete on price, pushing property rents down from their 2024 peaks and giving inflation-weary renters a much-needed break.
According to the latest Zumper National Rent Report, Manhattan’s median one-bedroom rent rose to an all-time high of $4,680 in May 2026. But across the Hudson in Jersey City, rents fell by a median of $2,860 — down 2.1% over the year
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One-bedroom rent in Jersey City peaked at $3,430 in mid-2024 before major property renovations brought costs down to $2,650 in August 2025.
As rents in New York City continue to rise, renting across the Hudson in Jersey City offers “a great financial decision.” (Getty Images)
Zumper’s report shows that instead of stifling development, local housing supply is increasing in Jersey City, giving tenants a rare bargaining chip when thousands of units hit the market at once.
“Manhattan is sitting outside of downtown rental housing, with developers favoring condos over rental buildings, and inventory has been one of the longest on record,” the report said.
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“New Yorkers don’t just go,” Zumper said. “Nearly 90% of New York City renters are staying in the same place they were last year, which is well above the national average. With asking rents at record highs, the gap between what an incumbent renter pays and open market costs is rarely wide, making moving to the city a big financial decision.”
Two-bedroom units in New York City and San Francisco are now tied for the nation’s most expensive title at $5,500. San Francisco one-bedroom rents topped $4,000 for the first time this month.
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On a larger level, American renters are starting to feel the squeeze again as the national median one-bedroom rent rose 0.7% month-over-month to $1,519 in May, and two-bedrooms rose 0.4% to $1,903.
“National ratings mask two very different housing markets right now,” Zumper CEO Shawn Mullahy wrote in the report. “In coastal cities that have a supply problem, pricing power has returned quickly. Across the Sun Belt, operators are still working through the inventory wave that was delivered a few years ago. The demand is there, but the supply still needs time to adjust.”
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