“New York apartment rents remain on an upward trajectory, while inventory expands as leases with ‘COVID deals’ continue to expire. Agents report strong activity in the market, and these available units are now being quickly absorbed. Whether it be due to interest rates, affordability factors, or economic concerns, some would-be buyers are choosing to stay on the sidelines and remain renters at least in the near-term. While conditions have moderated from the intensity of last summer, it is still a competitive environment for tenants.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- Average rent for all apartment types increased year-over-year. Studio and three-bedroom units experienced double-digit gains, and the $3,361 figure for studios marks a new record.
- The median Manhattan rent was $4,400 per month in April 2023. After remaining unchanged for five consecutive months, rents rose in March and again in April. The 4% rise from March to April is the largest month-over-month gain since May 2022. Median rent in the borough also increased 9% year-over-year.
Listings/Vacancy
- In April 2023, there were 6,227 active listings across Manhattan, a 7% rise from March and 21% year-over-year. This is the second-highest number of available apartments since the summer of 2021, and the month-over-month increase is also unusual for the season.
- The average Manhattan apartment took 102 to find a tenant in April, 9% longer than in March and 28% longer when compared year-over-year. Listings lingered on the market as tenants were presented with additional options.
- The Manhattan vacancy rate has been unchanged since February and remained at 2.18% in April. The rate experienced a minimal year-over-year increase, rising 0.35% when compared to April 2022. The vacancy rate has now been above 2% for eleven consecutive months.
- Midtown East had the highest vacancy rate in April (at 2.95%) while vacancy was lowest in Gramercy (at 1.05%).
Leasing Activity
- With 4,544 new leases signed in Manhattan, April 2023 leasing activity increased 7% from March and 4% year-over-year. However, this April did not reach the typical pace of leasing for the month pre-COVID, when an average of 4,900 leases were signed.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,583 in April 2023, down 2% from March but a 10% rise year-over-year. Median rent shifted downward month-over-month due to strong leasing activity for studio units.
- At $4,215, the Brooklyn average rent rose 1% month-over-month and 12% annually. April marked the 20th month of annual average rent growth.
Listings
- There were 3,342 listings available in Brooklyn during April 2023, a 7% rise from March and substantial 30% increase when compared to last year. Renters are likely resisting the current high rents, allowing available apartments to accumulate.
- The average Brooklyn rental spent 93 days on the market, 3% longer than in March but a notable 27% rise from last year.
Leasing Activity
- At 1,245, the number of leases signed in April 2023 rose 3% when compared to March, but slowed 7% when compared to last year. While activity increased month-over-month, typically we see a greater gain in traffic during the period.