New York City Residential Rental Market Report: October 2021
Rents increased year-over-year in both boroughs, but some segments have bounced-back faster than others.
“New York’s rental market rebound continues, and Manhattan’s high-end segment is seeing the largest gains. In October, the average rent for an apartment in one of the borough’s doorman buildings rose 22% year-over-year to reach $5,329 per month. Meanwhile, the average monthly cost for two- and three-bedroom homes climbed 14% and 26%, respectively, during the same period. Overall, pricing for more luxurious and larger product is now officially back to levels not seen since 2019.
Despite higher rents, demand remains strong, as October’s vacancy rate hit a seventeen-month low. Amenities and space are what many tenants want – and in most cases, they’ll need to pay ‘full price’ to get them.”
–Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The overall Manhattan median rent hit $3,305 in October, level compared to last month (when it was $3,300) and up 2% year-over-year. This marks the second consecutive annual increase in overall rents since the start of the pandemic.
- Average rents also climbed both month-over-month and year-over-year. They were bolstered by units doorman buildings, where pricing hit $5,329 per month, a 22% rise since October 2020. Meanwhile, the average rent for non-doorman apartments reached $3,298 in October 2021, a less-dramatic 1% year-over-year rise.
Listings/Vacancy
- In October 2021, there were 4,892 active listings across Manhattan, down 13% since September. Inventory was also down a substantial 82% annually and has returned to levels seen prior to the pandemic.
Lease Activity
- 3,944 leases were signed during October 2021, down 37% year-over-year. Leasing volume now matches the activity seen during October 2019, suggesting a market that is stabilizing to pre-pandemic levels.
- For reference, lease signings hit a record 8,995 in June 2021.
BROOKLYN
Rents
- October’s Brooklyn median rent of $2,850 was level vs. September (when it was also $2,850) and rose 2% year-over-year. This marks the highest annual increase in thirteen months.
- The average Brooklyn rent also continued to climb, reaching $3,364 in October. This number is up 1% from September, and 7% year-over-year.
Listings
- There were 3,129 active listings available in Brooklyn during October, a 2% decline from September and a significant 64% drop compared to October 2020.
- This is the lowest number of apartments available since June 2020, though still almost triple what was listed in October 2019 (pre-pandemic).
Lease Activity
- There were 1,061 leases signed in Brooklyn during October, down 9% from September and 43% year-over-year.
- This marks the third consecutive month where the number of signed leases declined. Rising prices, fewer concessions, and lower inventory levels have slowed market activity.
