“Unfortunately for apartment seekers, record-high rents have done nothing to curb tight vacancy rates market-wide. This limited inventory has kept New York City’s rental market extremely competitive. Summer is always the busiest time for leasing, but this year, conditions have reached new heights. My advice for tenants is to begin their search armed with patience, and be prepared to be flexible. Conditions are not uniform across all neighborhoods, so when it comes to finding a new home today, it pays to keep an open mind.”
–Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- May 2022’s median Manhattan rent of $4,200 rose 4% since April and a substantial 34% year-over-year. Median rents for both doorman and non-doorman buildings set new record highs.
- For units in doorman buildings, rents increased 35% annually, to reach $4,800 per month. For non-doorman product the median rent hit $3,300, a 32% rise.
- As usual, significant year-over-year average rent gains were seen across the board regardless of apartment size. Rising 29%, pricing for one-bedroom units increased the most, to reach $4,203. Rents for both studios and two-bedroom homes rose 25%—hitting $3,102 and $6,051, respectively. Meanwhile rents for three-bedroom apartments climbed 20%, to $8,358.
Listings/Vacancy
- In May 2022, there were 5,494 active listings across Manhattan, up 7% from April but down a noteworthy 62% year-over-year. The uptick from April is typical of seasonality when spring and early summer lease turnover begins to ramp up.
- The Manhattan vacancy rate fell slightly to 1.79% in May (vs. 1.83% in April). While the rental market is highly competitive, vacancy still has not dropped quite as low as it was pre-pandemic.
- The East Village/Lower East Side had the highest vacancy rate in May (at 2.76%) while vacancy was lowest just across town in Greenwich Village/West Village (at 0.65%).
Leasing Activity
- With 4,703 new leases signed, May 2022 leasing activity increased 7% from April. Due to ongoing pricing and inventory issues, 38% fewer eases were signed when compared to May 2021.
BROOKLYN
Rents
- Brooklyn’s median rent rose to $3,400 in May 2022, up 5% from April and a substantial 31% year-over-year. Median rent has increased both month-over-month and year-over-year for eight consecutive months.
- At $3,947, the Brooklyn average rent also climbed 5% month-over-month and rose 24% annually.
Listings
- There were 2,693 active listings available in Brooklyn during May 2022, a 4% rise from April but a notable 54% decline when compared to last May.
- The average Brooklyn rental spent 51 days on the market—down 30% since April and 32% year-over-year.
- Overall, Brooklyn rental inventory was approximately half of what it was just a year ago. In addition, the time an apartment spent on the market reached a two-year low.
Leasing Activity
- There were 1,181 leases signed in Brooklyn during May 2022, 12% fewer than in April—and 41% fewer than were executed in May 2021.
- May historically has been more active than April for reported leases but surging rents slowed May activity. Reported leases fell versus April and declined annually for the 10th consecutive month.