More apartments are coming to the NYC rental market, but prices remain high

After months of strong competition, New York City renters might finally feel at ease. For the first time in 18 months, the number of rental units available on the market is increasing. But so are the prices. 

There were 28,325 rentals listed across the city in May, the most since October 2021, according to the StreetEasy report. This is a sign of hope for the New York City tenants, as many of them had to attend crowded open houses and participate in bidding wars to find a rental. However, although the listing inventory is growing, rents remain high. The citywide median rent climbed to $3,349 a month. 

Manhattan saw the highest increase in rental inventory. In May, there were 13,933 rental units listed on StreetEasy. This is a 33.5 percent jump since December 2021, when there were only 10,433 units listed for rent. If you are looking to rent in Manhattan, pay attention to these neighborhoods: SoHo, Battery Park City, West Village, Flatiron, and East Village – as they saw the biggest increase in new rentals.

Rental inventory in Brooklyn has also gone up. But this growth was less significant. There were 9,598 rental units available in this borough in May, up only 10 percent from February, when the listing inventory fell to the lowest point. The report found that one particular area of Brooklyn saw a slow but steady increase. This was Northwest Brooklyn, which includes neighborhoods like Downtown Brooklyn, DUMBO, Fort Greene, and Boerum Hill. 

Meanwhile, Queens saw a decline in rental inventory. The number of available rentals fell from 3,917 in April to 3,749 in May. Astoria, Long Island City, and Sunnyside saw the most significant drop in listing inventory. 

According to Zillow senior economist Josh Clark, these inventory trends reflect the expiration of pandemic deals. Those, who scored lower rents in Manhattan last year, are now dealing with a significant increase in prices. Renters face a tough choice: pay more or look for a new apartment. “Those renters are now looking for more affordable places to live, especially in Brooklyn and Queens, which is why inventory is not recovering as quickly in those areas,” Clark said.  

Resources:

“Here's Where NYC Rental Inventory Is Increasing,” by Emily McDonald (StreetEasy, 2022)

“Here’s where NYC rentals are available and where they aren’t,” by Nisha Shetty (The Real Deal, 2022)

“Median Rents of Both UWS + UES Apartments Soar 42% Since Last Year,” by E.L. Danvers (IlovetheUpperWestSide.com, 2022)