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

New York City maintains its title as one of the most expensive cities to live in. The city’s rents continue to soar to new records despite an increase in the listing inventory. New Yorkers looking to sign a lease this summer will likely see rents rise even higher as we head into the peak season. Rents in Manhattan and other boroughs keep pushing upward. 

In May, the median cost of renting an apartment in Manhattan rose to a new all-time high of $4,395, according to the Elliman Report. The median Manhattan rent reached a new high for the third month in a row and was up 9.9 percent from the same period last year. However, record-breaking rents did not stop New Yorkers from signing new leases. 

There were 5,041 new leases signed in Manhattan last month, up 30.3 percent from April and 2.2 percent from a year ago. The report suggests that lease signing activity went back to normal after experiencing a sharp drop a month before due to bank failure and overall economic uncertainty. In addition, listing inventory also expanded month-over-month from 6,518 available rental units in April to 6,998 in May. 

Although the listing inventory went up last month, this change was not significant enough to slow rent increases. In Brooklyn, the median rent was $3,550, up from $3,500 in April. Brooklyn’s median rent set a new record for the second month in a row. This borough also experienced a surge in new lease signings, which rose nearly 40 percent from the previous month. Listing inventory in Brooklyn increased year-over-year for the sixth consecutive month.

Rents in Northwest Queens climbed to their second-highest level. The median rent in this part of New York City was $3,402 in May, down 3.5 percent from a month ago. The lease signing activity jumped 38.7 percent from April but slipped annually for the second month in a row. There were 451 rental units available in Northwest Queens last month, up 20.9 percent from the same period last year. 

 “The only thing I can see that would take the pressure off rents and create a meaningful decline is a recession,” Jonathan Miller, president and CEO of Miller Samuel, told CNN. “They’ve been forecasting a recession for the past two years. But until an adverse economic event occurs, it is hard to imagine a meaningful drop in rents.”

Resources:

“Elliman Report: Manhattan, Brooklyn & Queens Rentals 5-2023,” (Miller Samuel Inc., 2023)

“Rents keep rising in NYC, making leases from last year look like deals,” by Emily Myers (Brick Underground, 2023)

“Manhattan rents up 10% from a year ago,” by Anna Bahney (CNN, 2023)

“Manhattan Apartments Are Leasing in a Flash Ahead of Summer Frenzy,” by Jennifer Epstein (Bloomberg, 2023)