NYC rents remain at near-record levels this winter

New Yorkers looking to score a better deal when signing new leases had little to no luck this winter season. After peaking in the summer of 2022, the New York City rental market did not slow down in the colder months. This February, renters had to deal with near-record prices and limited inventory. 

In Manhattan, the median rent hit $4,095, down just $2 from January, according to the recent report from Miller Samuel Inc. Usually, winter months offer renters a better chance to score a lower price. However, this February, Manhattan rents fell only $55 short of their record, which was set in the summer of 2022.

More New Yorkers are entering the rental market despite elevated prices. There were 4,037 new leases signed in this borough last month, up 43.5 percent from a year ago. Jonathan Miller, the author of the monthly report, suggests that more renters avoid renewing their current leases due to price increases. Instead, they are searching for new apartments. 

The market share of bidding wars rose to 18.4 percent in Manhattan last month, reaching the same level as in the summer of 2022. In addition, more tenants prefer to sign longer leases. The market share of two-year leases climbed to 50.4 percent. The rising share of bidding wars and two-year leases shows that Manhattan rents will likely continue to increase in the following months.

“Rising mortgage rates pushed would-be buyers into the rental market, which made the market tighter,” Jonathan Miller told Mansion Global. “And the Fed would most likely hike interest rates again, coupled with a relatively strong local economy, Manhattan’s rents will have more upward pressure in the coming summer.”

The median rent for an apartment in Brooklyn was $3,400 in February, down 2.8 percent from January. Similar to Manhattan, the number of new lease signings increased in Brooklyn last month. In February, 1,540 new leases were signed in this borough, up 38.6 percent from the previous month. In addition, more Brooklyn tenants signed longer leases. The market share of two-year leases reached a whopping 72.2 percent. 

Rental units in Northwest Queens went for a median of $3,238 in February. The median rent in this part of New York City was down 3.9 percent from January but still higher than a year ago. The market share of two-year leases in Northwest Queens surged to 90.6 percent, a new all-time high. 

Resources:

“Elliman Report: Manhattan, Brooklyn & Queens Rentals 2-2023,” (Miller Samuel Inc., 2023)

“Manhattan Rents Soar to February Record,” by Fang Block (Mansion Global, 2023)

“Manhattan Apartment Hunters See No Relief From Near-Record Rents,” by Jennifer Epstein (Bloomberg, 2023)

“NYC leases surge as rent notches February record,” by Suzannah Cavanaugh (The Real Deal, 2023)

“Gap widens between Manhattan and Brooklyn median rents as demand for luxury rentals surges,” by Jennifer White Karp Brick Underground, 2023)