Rents in Manhattan and Queens continue to grow, new report finds

by Verus Real Estate

When the first wave of COVID hit New York City in the spring of 2020, the rents dropped significantly as many residents fled the city. But it seems that the recent spike in COVID cases had quite the opposite impact on the rental market.

Rents in Manhattan and Queens continue to grow and surpass their pre-pandemic numbers, according to the December 2021 Douglas Elliman report. The report found that the net effective median rent across New York City has reached its peak levels.

In December, the rent in Manhattan rose to $3,392, while the rent in northwest Queens hit $2,715. Net effective median rent is the average amount a tenant pays each month throughout the entire lease term. Both Manhattan and Queens rents surpassed their December 2019 rates.

Brooklyn rents did not surpass pre-Covid rates, but the listing inventory has dropped significantly by 83.4% compared to December 2020.

Tenants across the city are worried that rents will continue to surge due to the high demand and declining inventory. Many New York City residents choose to sign two-year leases hoping to avoid paying higher rent in the future. The market share of two-year leases reached 51.3% in Manhattan and 74% in Brooklyn.

In December 2021, northwest Queens saw a record number of new lease signings. There were 391 new leases, two times more than last year.

Overall, the NYC rental market is flooded with demand from potential tenants, and the vacancy rates continue to remain low. Fewer landlords have to compromise and offer concessions, such as rent discounts, additional goods, and services.

Resources:

“Elliman Report: Manhattan, Brooklyn & Queens Rentals 12-2021,” (Douglas Elliman, 2021)

“Manhattan rents surpass pre-Covid rates for first time, report finds,” by Eddie Small (Crain’s New York, 2022)

“What Is Net-Effective Rent? StreetEasy Makes It Easier to See What You'll Really Pay,” by Ian Port (StreetEasy, 2020)

“What Are Rent Concessions? A Guide for Landlords,” by Jamia Kenan (Apartments.com, 2020)