“In Manhattan, the median rent experienced its first annual decline in three years, falling slightly to $4,400 per month. Unexpectedly, rents also ticked down from July, which has promoted strong leasing activity. Additionally, the market share of ‘non-doorman’ leases soared to its largest share since October 2021, illustrating the current price-sensitivity of today’s apartment seekers.
The same overall trends can be found in Brooklyn. The borough’s rental market also experienced an uptick in leasing activity, marking the strongest August for new signed leases since 2021. Though median rent increased year-over-year, the figure has fallen monthly during three of the past five months — to reach $3,995.
Even small adjustments in asking rents by owners seem to have a big impact in terms of demand — as August was remarkably busy. While many tenants still likely experience a sense of ‘sticker shock’ with current New York rents, the good news is that last month brought them some relief, albeit slight.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $4,400 per month in August 2024 vs. $4,670 per month in July. Median rent fell 6% from July and 2% year-over-year. This marks the largest monthly decrease since November 2020 and the first annual decline in three years.
- Average rent decreased year-over-year for all apartment sizes. Pricing for studios decreased most significantly, down 5% versus last year. August 2024 also experienced the highest number of studio leases signed in over three years — perhaps spurred by these lower rents.
Listings/Vacancy
- In July 2024, there were 8,454 active listings across Manhattan, up 4% from June and 21% year-over-year. Newly-released rental inventory has contributed to an increase in active listings. The number of available apartments in July 2024 was higher than the last three Julys.
- The average Manhattan apartment took 36 days to find a tenant in July, compared to 32 in June — a 13% increase month-over-month but a 57% drop when compared to July 2023. As is typical with the July rental market, days-on-market increased when compared with June as tenants had more options. Overall, tenants signed leases at a rapid pace, as this marks the fastest marketing time for July in six years.
- The Manhattan vacancy rate was 2.18% in July, up from June when the rate was 2.14%. However, vacancy is still lower than it was at the same time last year — as July 2023’s rate was 2.60%.
Leasing Activity
- With 6,349 new leases signed in Manhattan, August 2024 leasing activity climbed 19% when compared to July and 5% year-over-year. Leasing for non-doorman product outperformed the market as a whole, rising 16% annually.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,995 in August 2024 — down minimally vs. the $4,000 per month in July. However, rents rose 3% year-over-year. Median rent in the borough has fallen month-over-month since May but has risen annually for 35 consecutive months.
- Average rent rose year-over-year across all bedroom types in August. Two-bedroom and three-bedroom units saw the largest annual gain, up 9% compared to last year. Studio apartments experienced the smallest increase, up 2%, though they reached a new record for average rent — at $3,324 per month.
Listings
- There were 4,951 active listings available in Brooklyn during August 2024, 3% fewer when compared to July but up 26% year-over-year. Inventory has reached the second-highest level in three years partly due to new rental introductions/building launches.
- The average Brooklyn rental spent 38 days on the market in August. This is 19% more days versus July but 27% fewer when compared to last year. This marks the sharpest annual August-to-August decline in five years.
Leasing Activity
- At 1,483 the number of leases signed in Brooklyn during August 2024 rose 1% from July and 4% annually. This was the strongest August for lease activity since 2021.
- Leasing activity increased annually for all unit types except three-bedrooms. One-bedrooms saw the largest increase, up 6% compared to last year, while two-bedroom units and studios followed closely behind, expanding by 5% and 4% respectively.