NYC sees median rents rise for the third month in a row
- Median rent for new Manhattan leases hit $4,334 in December as per the Elliman Report
Winter is usually a slower month for rentals but the market is still absorbing buyers who are putting off purchasing for now.
iStock
The New York City sales market is not done messing with the rental market. For evidence, look at median rents for new leases in Manhattan and Brooklyn: both rose for the third month in a row—in winter.
In December, median rent rose 7 percent to $4,334 in Manhattan and .7 percent to $3,495 in Brooklyn compared to a year ago, according to the latest edition of the Elliman Report.
Winter is usually a slower month for rentals and can be a time to get a deal on a new lease, but the market is still absorbing buyers who are putting off purchasing for now. (However, some buyers are tired of waiting to make a move.)
Buyers “on the fence are being tipped back into the rental market” because of flat-to-higher interest and mortgage rates,” said Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report. This in turn increases demand for rentals and enables landlords to ask for higher rents for new leases.
He said he expects rents will continue to rise throughout the winter.
“Affordability won’t improve unless there’s a different trajectory for interest rates,” Miller said. “I think there’s a higher probability of rents softening in the second half of 2025 when mortgage rates are expected to fall.”
New leases rise in Manhattan
Lease signings continued to increase in Manhattan; they were up annually for the ninth time last month, rising 18.2 percent, according to the Elliman Report. Listings increased year over year for the 16th time, rising 27.8 percent.
Rents are rising faster for Manhattan non-doorman units, the lower half of the market. Median rent for non-doorman was up 7.7 percent to $3,500, compared to a 3.2 increase to $5,000 median rent for doorman apartments.
All rent indicators for luxury rose annually for the first time in 17 months, the report said.
Median rent for luxury units, representing the top 10 percent of the market, rose 4.3 percent to $10,100.
“Manhattan is still shy of the record rents that we saw in summer 2023 but we’re getting closer,” said Miller, who add that he’s not anticipating new records in 2025, “but it’s not out of the question.”
Brooklyn listings up nearly 50 percent
All of the rent metrics for Brooklyn rose year over year for the third time (average, rent per square foot, median, and net effective rent, which factors in concessions) as per the Elliman Report. New lease signings were up annually for the 15th time, rising 18.8 percent.
Listings increased year over year for the 11th time, the report said, soaring 49.8 percent.
Queens median rent slips
In the northwest section of Queens covered by this report, nearly one in five leases was signed above the asking rent, the highest market share in almost three years.
Median rent slipped annually for the first time in three months, falling 2.6 percent to $3,395.
Lease signings were up annually for the 15th time, increasing 6.5 percent over last year.
Listings rose year over year for the 11th time; they were up a whopping 97.2 percent over last year.
‘Continued rise of the outer boroughs’
The Corcoran Group also released its Manhattan and Brooklyn rental reports for December.
Gary Malin, COO at Corcoran, noted Brooklyn’s “relatively bustling” rental market in December “despite the distracting holiday season.
“With plenty of options for apartment-seekers, including a significant number of new developments in neighborhoods like Downtown Brooklyn, the borough of Brooklyn outperformed in December,” Malin said.
“While Manhattan will always have a unique appeal as the heart of our city, it is interesting to witness the continued rise of the outer boroughs as primary destinations in their own right. Increasingly, they are the first choice for new residents from around the country and the world,” he said.
You Might Also Like
