NYC Residential Rental Market Report: January 2025
“Manhattan renters faced a challenging market as we entered 2025. Reaching $4,530 per month, the median rent in the borough rose, both when compared to December and year-over-year. Leasing increased in January after the holiday lull, but not to the extent we have seen historically. With the number of available apartments at its lowest level in 30 months and low vacancy rates, prices for tenants are being driven up.
The Brooklyn rental market also kicked off the new year on a relatively subdued note. As in Manhattan, the number of signed new leases climbed when compared to December but fell on an annual basis – to the lowest January level since 2021. Meanwhile, the median rent continued its steady climb – hitting $3,995 per month. Despite a modest 2% rise in available inventory when compared to last January, renters in the borough still face limited options.
High rents and stubbornly high interest rates have caused many New Yorkers to delay moving to a new rental or purchasing a new home. It’s simply easier to stay put. Without this turnover, inventory remains constrained. Barring a much-needed influx of new rental housing, even higher rents and increased competition for available units could be the trend as the year progresses.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $4,530 per month in January 2025 – up 1% from $4,500 in December and 5% year-over-year. The borough has seen only single-digit annual median rent growth for nearly two years – meaning rents are rising, but slowly.
- In January, all unit types saw average rent increases compared to last year. Average rent for two-bedrooms matched the record-high figure of $7,041 seen in November 2023 thanks to higher rents achieved in prime downtown condo buildings.
Listings/Vacancy
- In January 2025, there were 5,521 active listings across Manhattan, down 5% versus December and 32% year-over-year. With availability at a 30-month low, prices are being driven up, creating challenges for those looking to rent.
- The average Manhattan apartment took 58 days to find a tenant in January, compared to 60 in December – a 3% decline month-over-month but a 4% rise when compared to January 2024. After rising monthly for four consecutive months, the number of days-on-market is now beginning to fall.
- The Manhattan vacancy rate was 1.75% in January, down from December when the rate was 1.84%. Vacancy also fell when compared to the same time last year, as January 2024’s rate was 2.36%. With fewer active listings, the rental market remains extremely tight due to high demand and limited supply.
Leasing Activity
- With 3,424 new leases signed in Manhattan, January 2025 leasing activity rose 20% when compared to December, following the typical post-holiday trend. However, the number of new leases was still lower than the usual average of nearly 4,000 for the first month of the year – and fell 13% versus last January.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,995 in January 2025 – up a slight 0.3% vs. the $3,983 per month in December and a 1% rise year-over-year. Although January’s price gains were minimal, the median rent is now just 3% below the peak reached in June 2024.
- Average rent for three-bedroom units decreased a modest 1% year-over-year to $6,343, boosting leasing activity for that unit type. In contrast, average rents for studios, one, and two-bedrooms increased slightly compared to a year ago.
Listings
- There were active 3,386 listings available in Brooklyn during January 2025, 3% fewer when compared to December but up 2% year-over-year. Rents are still up on an annual basis, but the y-o-y growth rate has slowed in recent months.
- The average Brooklyn rental spent 50 days on the market in January. This is 6% longer when compared to December and 14% longer when looking year-over-year.
Leasing Activity
- At 919, the number of leases signed in Brooklyn during January 2025 rose 13% from December but fell 7% annually. While activity rose in the new year, it was still less than the typical monthly increase from December to January. In fact, reported signed leases fell to the lowest January level since 2021.
- Leasing activity decreased year-over-year for all apartment sizes except three-bedrooms. For this property type, new leases rose 17% and market share climbed to an 18-month high.
