“The good news for tenants is that inventory levels have risen this spring. There were 35% more available homes for rent in March than in February, a significant jump month-over-month. In addition, the steady climb in pricing seems to have slowed, but rents remain at record-highs overall. It’s important to note however, that circumstances vary widely across property types and neighborhoods.
Competition for apartments in doorman buildings and in prime locations can be intense, with units leasing sight-unseen or for over the asking rent. In contrast, the change in conditions for walk-up units and in parts of Upper Manhattan and Brooklyn has not been nearly as extreme. For example, median rents increased 76% year-over-year in SoHo/Tribeca, while pricing in Morningside Heights and Harlem experienced a much less dramatic 7% rise. While everyone’s priorities are different, the market often rewards those who are willing to be flexible.”
–Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- March 2022’s median Manhattan rent of $3,855 rose 3% since February and a substantial 29% year-over-year. This marks a record-high median rent for the borough.
- However, pricing trends vary depending on property type. Climbing 32% annually to reach a median of $4,495, prices in doorman buildings continue to rise at a greater rate than those in non-doorman buildings. For non-doorman units, the median rent decreased 3% vs. last year—to $3,000.
- Average rents also climbed by double-digits for all apartment sizes and property types both month-over-month and year-over-year. Average rents in doorman buildings rose 11% annually to reach $4,696 per month, while for non-doorman product they rose 30%—to reach $3,830. In terms of unit type, average pricing for studio units increased the most. Rents in this category rose 29% annually, hitting $2,993.
Listings/Vacancy
- In March 2022, there were 5,942 active listings across Manhattan, up 35% from February but down 62% from a year ago. An increase in new apartments coming to market has prompted a more active month for leasing activity.
- In March, the Manhattan vacancy rate rose slightly, reaching 1.85% (vs. 1.70% in February). However, the borough’s vacancy rate is down 2% versus last year. The East Village/Lower East Side had the highest vacancy rate (at 2.59%) while vacancy was lowest in Greenwich Village/West Village (at 1.00%).
Leasing Activity
- With 3,888 new leases signed, March 2022 leasing activity increased 44% from February. New listings coming to market were eagerly absorbed. In contrast, 47% fewer leases were signed when compared to March 2021.
- In March, 56% of Manhattan leases signed were in properties with a doorman.
BROOKLYN
Rents
- Brooklyn’s median rent rose to $3,220 in March 2022, up 4% from February and 24% year-over-year. The median rent in Brooklyn has finally reached its pre-COVID high.
- At $3,546 the Brooklyn average rent dipped 1% when compared to February, while it was up 17% annually. A 12-month low market share of three-bedroom lease signings contributed to the 1% month-over-month decline in average rent.
Listings
- There were 2,921 active listings available in Brooklyn during March 2022, a 9% rise from February but a notable 43% decline when compared to last March.
- The average Brooklyn rental spent 64 days on the market— down 35% since February and 16% year-over-year. In this competitive marketplace, tenants are making faster decisions.
Leasing Activity
- There were 1,203 leases signed in Brooklyn during March 2022—36% more than in February, but 31% fewer than were executed in March 2021.
- The uptick versus February, while typical of seasonality, is reassuring heading into spring, especially with median rent at a record high.