Manhattan rents reach a new all-time high for the sixth month in a row

NYC rents remain on their path upward. After surpassing the $5,000 mark in June, the average rent in Manhattan climbed to $5,113 a month in July, according to the new report from Miller Samuel. So far, this is the highest rental price on record. 

The average rent for an apartment in Manhattan jumped 27.5 percent from July 2021. Rents in this borough have been growing month-over-month and might continue to increase in August due to strong demand from tenants and low inventory. 

"It will continue, at a bare minimum through next month, because more demand is anticipated putting upward pressure on prices," Jonathan Miller, CEO of Miller Samuel, told CNN. 

There were 6,669 apartments available in Manhattan this July, up 3.7 percent from last month. However, this number is still below what we saw in July 2021, when there were 11,794 available rentals. 

Rents in the outer borough are also increasing. The average rent in Brooklyn has been setting new records for the fourth month in a row, reaching $3,822 a month in July. Rental inventory fell 70 percent from last year to only 3,639 available apartments. The rental market in Brooklyn remains highly competitive. Only a small percentage of landlords offer concessions, such as free months of rent, and bidding wars occur in nearly one out of four new leases. 

Similar market trends could also be seen in Northwest Queens where the average rent jumped more than 11 percent from last year to $3,426 a month. This borough saw the highest decline in the number of available apartments, which fell more than 83 percent from July 2021 to 418 units. The market share of landlord concessions dropped to the lowest level in seven years. 

Overall, NYC renters are currently facing one of the toughest markets in a decade. Johnathan Miller suggests that rents will continue to rise through the end of this year but at a much slower pace. 

Resources:

“Elliman Report: Manhattan, Brooklyn & Queens Rentals 7-2022,” (Miller Samuel Inc., 2022)

“Manhattan rents hit record high for the sixth month in a row,” by Anna Bahney (CNN, 2022)