Manhattan and Brooklyn rents stay below their summer peak as more landlords offer concessions

After reaching their peak in the summer of 2022, New York City rents have been cooling for quite some time, and the last month of 2022 was no exception. This change in the rental market brings some relief to NYC tenants, who have been dealing with record-high prices and additional demand created by rising homeownership costs. 

In December, the median Manhattan rent was $4,048, down 1.1 percent from November, according to the latest report from Miller Samuel Inc. However, it was still the highest on record for December. The slight change in the rental prices is tied to the increase in landlord concessions. The share of landlords offering free months of rent rose to 18 percent last month, up from 16 percent in November 2022. 

Manhattan's vacancy rate has been rising for the past eight months, which indicates that the competition among NYC renters has softened since its peak in the first half of 2022. Last month, the vacancy rate in this borough reached 2.69 percent, up almost a full percentage point from December 2021. Although more NYC landlords are willing to offer concessions to avoid empty units, they still have an advantage over renters. 

Brooklyn rents have also stayed below their peak levels this winter. In December, the net effective median rent for an apartment in this borough was $3,300, the same as in November 2022. More than 19 percent of new leases signed in Brooklyn last month included concessions, up from 13.9 percent in the summer. In addition, the number of landlord concessions paid in December reached the highest level in fourteen months. 

There were 3,141 rental units available in Brooklyn last month, down 16.4 percent from November but more than double pre-pandemic levels. Similar to Brooklyn, the listing inventory in Queens fell month-over-month to 440 available units but remained more than 12 percent above pre-pandemic levels. Last month, apartments in this borough were rented out for a median of $2,809, down 11.8 percent from a month before. The share of landlords offering free months of rent jumped from 10 percent in November 2022 to over 16 percent in December 2022. 

Resources:

“Elliman Report: Manhattan, Brooklyn & Queens Rentals 12-2022,” (Miller Samuel Inc., 2023)

“Manhattan and Brooklyn rents continue to cool: report,” by C. J. Hughes (Crain’s New York, 2023)

“Rents slipping nationally, but Manhattan landlords won’t budge,” by Suzannah Cavanaugh (The Real Deal, 2023)