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New York City Residential Rental Market Report: June 2021

The Corcoran Group recently released its residential rental reports for Manhattan and Brooklyn for June 2021. Among the reports’ key findings:

Manhattan

The anticipation of the city’s full reopening drove the uptick in leasing activity. In Manhattan, 8,995 leases were reported signed in June, up 18% since May. In some cases, renters even signed leases on sight-unseen apartments.
With 1,387 leases signed during June, the Upper East Side saw the most traffic from apartment-seekers. The Upper West Side, with 1,094 leases signed, was the second-most popular destination for renters – followed by Midtown West, with 991 new leases.
At $3,045, the Manhattan median rent declined both month-over-month and year-over-year. However, the median rent for doorman buildings, while still below last year, has experienced monthly gains since the beginning of the year. Non-doorman buildings have not seen similar recent rent increases.
At 3.49%, the June vacancy rate decreased slightly from May (when it was 3.58%). Robust leasing activity is helping absorb the high level of available inventory.

There were 2,544 reported leases signed across Brooklyn during June, 26% more than last month and the highest reported figure in over two years. The expanding renter pool and current renters looking for new lease terms drove the increased activity.
With price sensitivity still prevalent, lease activity mainly shifted east and south in the borough. With 287 leases signed, Crown Heights/Prospect-Lefferts Gardens was the most popular area for new renters, followed by Bedford-Stuyvesant, where 247 leases were signed during June.
At $2,600, the Brooklyn median rent was flat versus May, but 13% lower than a year ago. To attract new tenants, some landlords have pivoted to lowering face rents versus offering free month(s) of rent via an incentive.
With an average rent of $4,928, DUMBO was the only Brooklyn neighborhood studied where rents climbed year-over-year, rising 5%. In contrast, pricing declined the most in Park Slope. The average rent in this neighborhood was $3,151 in June, down 23% from last year.