“More inventory hit the market and leasing activity picked up as we entered 2022, which is typical for the ‘post-holiday’ season. What’s changed from years past however, is the recent demand for larger and more luxurious product.
The luxury rental segment continues to outperform the market as a whole. ‘Amenities’ and ‘space’ remain the buzzwords for many of today’s renters. A full 57% of new Manhattan leases signed in January were in doorman buildings, while the average rent for apartments in this property type climbed a remarkable 41% year-over-year, versus 19% for units in non-doorman buildings. Meanwhile, the average rent for three-bedroom homes rose 38% since last year, while pricing for studios was up a less-substantial 18%.
Due to the area’s more modest rent growth, Upper Manhattan experienced the largest annual rise in rental transactions during January. This increased activity was driven by apartment seekers in search of value. Despite the competitive conditions, there are still opportunities for price-conscious tenants.”
–Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- January 2022’s median Manhattan rent of $3,595 was unchanged from the month prior. However it rose a substantial 24% versus last January. Median pricing for units in doorman buildings climbed 35% year-over-year, to hit $4,395 per month. Meanwhile, gains were not nearly as robust for non-doorman apartments. The median monthly rent for properties of this type climbed 12%, to reach $2,795.
- Average rents also climbed by double-digits for all apartment sizes and property types both month-over-month and year-over-year. Rents for units in doorman buildings and larger apartments continue outperform the market as a whole. Average rents in doorman buildings rose 41% year-over-year to reach $5,573 per month, while rents for three-bedroom homes experienced a 38% annual climb, reaching an average of $8,074.
Listings/Vacancy
- In January 2022, there were 4,855 active listings across Manhattan, up 23% since December. This post-holiday rise in inventory is typical for the season. However, compared to a year ago, renters had 82% fewer listings from which to choose.
- In January, the Manhattan vacancy rate reached 1.58% (vs. 1.55% in December). The borough’s vacancy rate is down a substantial 3.16% versus last year. Midtown East and the East Village/Lower East Side had the highest vacancy rates (at 2.07% and 1.96%, respectively) while vacancies were lowest in Greenwich Village/West Village and on the Upper East Side (at 1.00% and 1.09%).
Leasing Activity
- With 2,886 new leases signed, January 2022 leasing activity ticked up a slight 3% from December. However, 36% fewer leases were signed when compared to January 2021.
- Despite the continued price increases, Manhattan rentals in doorman buildings continue to be in high demand. In January, a full 57% of leases signed were in properties with an attended lobby, one of the highest percentages seen in two years.
- By neighborhood, Inwood/Washington Heights and Harlem/Morningside Heights experienced the largest year-over-year upticks in leasing activity (at 23% and 19% respectively).
BROOKLYN
Rents
- Brooklyn’s median rent held its position at $3,000 during January 2022, unchanged since December. However, this price is a 19% rise year-over-year.
- At $3,386 the Brooklyn average rent dipped 6% when compared to December, while it was up 14% annually. We attribute the month-over-month decline to the rising share of one-bedroom leases, which accounted for a full 40% of all transactions during January.
Listings
- There were 2,529 active listings available in Brooklyn during January 2022, a 9% decline from December and a notable 72% drop compared to January 2021.
- In January, the average Brooklyn rental spent 92 days on the market—up 26% since December and 7% year-over-year. Determined to find the best deals, Brooklyn renters expanded their search time.
Leasing Activity
- There were 988 leases signed in Brooklyn during January 2022, 31% more than in December—but 40% fewer than were executed in January 2021.
- Typical for the market, January’s leasing activity increased from December, when activity was tempered due to the holiday season.
- Last year’s busy January was fostered by inventory nearly reaching an all-time high and rents falling to a new low. This January, market conditions were reversed, which significantly cooled year-over-year leasing activity.