Manhattan rents rose in November and became the third highest on record

The end of the fall usually marks the beginning of a seasonal decline in rents. Between October and April, renters have a chance to score a lower price. However, this fall, NYC rents remain one of the most expensive on record, discouraging those who hoped prices would go down during the cold season. 

The median rent for a Manhattan apartment rose 2.1 percent in November, according to the new report prepared by Miller Samuel Inc. In just one year, the median Manhattan rent jumped from $3,450 to $4,095, the third highest on record. Meanwhile, the luxury rental market, which includes the top ten most expensive leases, slowed down last month, causing a decline in the average rental price. 

“Rents aren’t rising like they were earlier this year, but they remain stuck at a high level,” Jonathan Miller, president and CEO of Miller Samuel Inc. told CNN Business. “Since rents peaked at the end of summer, they have now drifted slightly lower, but are not falling significantly.”

The rise in rents caused a decline in new lease signings. Last month, only 3,070 new rental agreements were signed across Manhattan, marking the biggest decline since the pandemic started. This significant drop in new leases might motivate some landlords to adjust the prices. In November, the share of new leases with concessions, such as a free month of rent, rose to 16 percent, up from 13 percent in October. 

NYC renters might have better luck finding good deals in Brooklyn. The median asking rent in this borough dropped 5.6 percent in November, from $3,497 to $3,300. Similar to Manhattan, the number of new leases signed in Brooklyn has declined year-over-year. More NYC renters chose to renew their current leases rather than enter a pricey housing market. The share of new rental agreements with concessions went up from 15 percent in October to over 20 percent in November. 

Queens, one of the city’s most affordable rental markets, shows no signs of slowing down. The median rent for an apartment in Northwest Queens went up almost 3 percent from October and 22.5 percent since last year to $3,185. The listing inventory declined year-over- year, and the market share of landlord concessions went down for the sixteenth consecutive month.

Resources:

“Elliman Report: Manhattan, Brooklyn & Queens Rentals 11-2022,” (Miller Samuel Inc., 2022)

“Even luxury rents normalize as overall market softens,” by Suzannah Cavanaugh (The Real Deal, 2022)

“Manhattan And Brooklyn Rents Flatten After Record Surge — But Don't Expect Bargains,” by Greg David (The City, 2022)

“The average rent in Manhattan jumped to $5,249 in November — and may not fall any time soon,” by Anna Bahney (CNN Business, 2022)

“Manhattan renters face sticker shock with average rent at $5,200,” by Robert Frank (CNBC, 2022)

“Expect NYC rents to fall? You're going to be disappointed by this latest market snapshot,” by Emily Myers (Brick Underground, 2022)