Manhattan rents set a new record in March as the market moves into the spring season

New Yorkers looking to sign a lease in Manhattan last month were met with the highest rents on record. After moving sideways for seven months, Manhattan rents reached a new all-time high in March 2023, and it seems they will continue to rise in the following months. Usually, NYC rents begin to increase in May and reach their peak in July. 

The median rental price for an apartment in Manhattan rose to $4,175 in March, up from $4,095 in the previous month, according to the latest Elliman Report. Manhattan rents jumped 12.8 percent from a year ago, breaking the July 2022 record of $4,150. However, the record-high prices did not stop tenants from signing new rental agreements. 

The number of new leases signed last month was up 20.4 percent from February. Fortunately, those on the market for a new rental apartment had more options to choose from, with the listing inventory going up 40.5 percent year-over-year. However, more New Yorkers preferred to sign two-year leases to avoid future rent hikes.  

“It is part of a long process since the summer,” Jonathan Miller, president and CEO of Miller Samuel Inc., told CNN Business. “There was expectation that rents would fall and that didn’t happen. Rents peaked last summer. Every month since then, they’ve been moving sideways. With a modest increase, it was just enough to set a new record.”

Apartment hunters in Brooklyn also had to deal with record-breaking rents. The median monthly rent in this borough rose 16.4 percent from last year to $3,493, the new all-time high for the month of March. New lease signings expanded 37.3 percent fro the previous month, reaching the highest level on record. The listing inventory has also improved, rising 25.2 percent year-over-year. 

NYC renters saw similar market trends in Northwest Queens, where the median rental price was $3,300 last month, setting a new record for the month of March. There were 497 new leases signed in March 2023, up 5.3 percent from a year ago. The listing inventory also increased slightly to 526 available rental units. 

Resources: 

“Elliman Report: Manhattan, Brooklyn & Queens Rentals 3-2023,” (Miller Samuel Inc., 2023)

“Manhattan Rents Reach Record High With Busy Season Yet to Come,” by Jennifer Epstein (Bloomberg, 2023)

“Manhattan median rents hit another high in March,” by Anna Bahney (CNN, 2023)

“Manhattan median rent hits new high as NYC defies U.S. trends,” by Jennifer White Karp (Brick Underground, 2023)

“While Rent Prices Dropped Around the Country in March, Manhattan Hit a New Record High,” by Madeline Garfinkle (Entrepreneur, 2023)