Rent prices in Manhattan went down for the second month in a row

Manhattan rents have been hitting record highs for much of 2022. However, this exponential growth stopped in August when the median rental price for an apartment in this borough decreased from the previous month. This trend of lower rental prices now continued through September. 

Last month, the median Manhattan rent fell to $4,022, down nearly 2 percent from August, according to the report from an appraisal firm, Miller Samuel Inc. The median rental price has been moderately decreasing for two consecutive months. This change in prices reflects the overall seasonal cool-off. Rents in New York City usually start to trend upward by the end of spring and then drop again during fall and winter. 

The competition in the Manhattan rental market is easing. Bidding wars occur less often compared to the previous year. However, the number of available rental units remains low. In September, the listing inventory in this borough dropped 3.3 percent from August to 6,494 apartments, according to Miller Samuel. Although Manhattan rents experience a month-over-month decline, they are still the highest on record for this month.  

“While market-wide median rent and net effective median rate slid month over month after peaking in July, both indicators were the highest recorded for a September in a dozen years,” the Miller Samuel CEO, Jonathan Miller, wrote in the report. 

Brooklyn rents also went down last month by 0.1 percent or $5. The median rent in this borough slipped from $3,500 to $3,495. There were 3,728 apartments listed in Brooklyn in September, up more than 10 percent from last year. However, bidding wars still occur in 20 percent of new leases. 

Queens is following a different path than Manhattan and Brooklyn. Last month, the median rental price in Northwest Queens set a new record after climbing to $3,200 a month. Since Queens is still one of the most affordable NYC boroughs, more tenants decide to move here, and the demand for rentals remains high. The market share of landlord concessions declined annually for the fourteenth month in a row, and the number of available rental units fell year-over-year to 558 apartments. 

Resources:

“Elliman Report: Manhattan, Brooklyn & Queens Rentals 9-2022,” (MIller Samuel Inc., 2022)

“Manhattan rents drop again — but not for luxury buildings,” by Suzannah Cavanaugh (The Real Deal, 2022)

“Manhattan Luxury Apartment Rents Are Still Hitting Record Highs,” by Jennifer Epstein (Bloomberg, 2022)