Manhattan rents just hit an all-time high, which is bad news for renters at every level and good news for landlords who already own buildings.

• Rent freezes on half of Manhattan's apartments pushed landlords to raise prices everywhere else.
• Luxury rents jumped 35% in a year, and the squeeze trickles down to cheaper apartments as people get pushed out of what they wanted.
• Wealthy buyers are renting instead of buying, adding more competition for the same limited supply.
• Permitting rules make it hard to build tall, so developers build a few units instead of many — or skip New York and buy bonds instead.
• Austin, Texas shows the opposite: easy building rules let supply grow, and prices there are down 25% from the peak.

Outlook: Without changes that make it easier to build, New York rents will likely keep climbing.