In Manhattan, limited inventory and rising rents tempered listing activity. In Brooklyn, inventory continued to drop as year-over-year prices increased.
“The vacancy rate continued to fall during November, and reached its lowest level in 18 months. Meanwhile, rents rose year-over-year in both Manhattan and Brooklyn. The largest increases occurred for Manhattan three-bedroom apartments, where average pricing climbed a substantial 47%. However, the extraordinary leasing activity we experienced this summer is largely a thing of the past. Lower inventory and higher rents have caused traffic to moderate. Despite the continued uncertain times, New York’s rental market is in many ways back to ‘normal.’ That’s a testament to our city’s continued desirability – and evidence of a resiliency that is quite simply, remarkable.”
–Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- In November 2021, the overall Manhattan median rent reached $3,400, up 3% from the October median of $3,305. When compared to November 2020, the median rent rose 13%. This marks the third consecutive month of year-over-year rent increases.
- Average rents also climbed substantially both month-over-month and year-over-year. Rents for units in doorman buildings and larger apartments experienced the greatest pricing gains. At $5,362, the average rent in a doorman building climbed 28% since last year. Meanwhile, the average rent for two and three-bedroom homes rose 33% and 47%— to hit $5,755 and $8,438, respectively—during the same period.
Listings/Vacancy
- Inventory continues to fall. In November 2021, there were 4,585 active listings across Manhattan, down 6% since October. Year-over-year, inventory was also down a substantial 85%. November was the fifth consecutive month with a double-digit annual decline in inventory.
- In November, the Manhattan vacancy rate reached 1.60% (vs. 1.65% in October), marking the lowest borough-wide vacancy rate in 18 months. Vacancies were above 2% in just two neighborhoods; Midtown West and the East Village/Lower East Side.
Lease Activity
- 2,788 leases were signed during November 2021, down 27% since October and 37% year-over-year. For reference, lease signings hit a record 8,995 in June 2021.
- Despite dramatic price increases in doorman buildings, leasing activity fell by a lesser percentage (down 32%) for this property type versus non-doorman buildings (down 43%).
BROOKLYN
Rents
- November’s Brooklyn median rent of $2,895 is a 2% rise when compared to October, and a 7% climb versus last year.
- While the average rent in the borough declined a slight 1% month-over-month to reach $3,343, year-over-year, the average Brooklyn rent rose 6%. In addition, for the second consecutive month, average rent increased year-over-year for all bedroom types. Studios had the greatest increase at 24%, but rents for all unit types are above their respective pre-pandemic November 2019 figures.
Listings
- There were 2,989 active listings available in Brooklyn during November, a 4% decline from October and a significant 67% drop compared to November 2020.
- The average Brooklyn rental spent 91 days on the market – up 26% since October and 23% year-over-year. Higher rents caused the number of days on market to increase, along with a smaller renter pool.
Lease Activity
- There were 970 leases signed in Brooklyn during November, down 9% from October and 26% year-over-year.
- This was the fifth consecutive month where reported leases declined annually. However, November 2021’s figure was still 9% above November 2019 (pre-pandemic).