Manhattan median rent sets a new record, reaching $4,000 a month

For the first time ever, the median rent in Manhattan climbed to $4,000 a month. This is the highest price ever, according to the rentals market report prepared by Miller Samuel Inc. Manhattan's median rent went up nearly 2 percent from April and over 25 percent since May of last year. Similar rent increases are also seen in Brooklyn and northwest Queens. 

New York City continues to rebound from the effects of the pandemic, and the rental market remains busier than ever. New lease signings in Manhattan are increasing month-over-month, and the vacancy rate remains under 2 percent for the sixth month in a row. Last month, the listing discount fell to 0 percent reflecting high demand from renters and low inventory. 

Manhattan listing inventory went up compared to last month but declined year-over-year. The number of rental units available on the market increased 22.7 percent from April to 5,776. For comparison, at the same time last year, the number of rental units listed on the market reached 19,025. Declining inventory, rising inflation, and remote work are among the drivers of NYC rents. 

Jonathan Miller, the author of the report, suggests that the remote work setup allows people to explore more neighborhoods and rationalize paying more in rent since they spend more time at home. “People are living where they really want to live, which can also be a driver for paying more than they’re used to paying,” Miller told The New York Times.

Similar to Manhattan, the median rental price in Brooklyn went up to $3,250 a month. This is a 6.6 percent increase from April and 18.2 percent from last year. Listing inventory in this borough increased almost 16 percent from last month but fell 78 percent year-over-year. There were only 2,954 rental units available in Brooklyn in May of this year compared to 13,410 units in May of 2021.  

The median rent in northwest Queens went down 5.6 percent from last month but increased 19.6 percent compared to May 2021. Currently, the median rental price in northwest Queens sits at $2,950. The inventory in this borough continues to decline month-over-month and year-over-year. There were 373 rental units available on the market in May, which is an 87.5 percent drop compared to last year when there were nearly 3,000 units listed for rent. 

Resources:

“Elliman Report: Manhattan, Brooklyn & Queens Rentals 5-2022,” by Jonathan Miller (Miller Samuel, 2022)

“Median rent in Manhattan hits $4,000/month for the first time,” by Michelle Cohen (6sqft, 2022)

“Median Rent in Manhattan Reaches a New High,” by Anna P. Kambhampaty (The New York Times, 2022)