“Historically speaking, August is the busiest month for New York City’s rental market, so it’s typical that rents and leasing activity climbed. In addition, because pricing has risen so high, tenants may have postponed a move to the last minute before their fall work or school commitments kick in.
However, the rising vacancy rate is a sign that some renters have reached their breaking point financially. When boosting rents, owners are simultaneously increasing their number of empty units. It’s also important to note that August marks the end of the traditional ‘busy season.’ As demand usually wanes as fall and winter approaches, it will be interesting to see how the market trends in the coming months.”
—Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- August 2022’s median Manhattan rent of $4,360 increased 3% from July and 38% vs. last year. After plateauing from June to July, Manhattan rents are back on the rise.
- For units in doorman buildings, median rents increased 31% annually to reach $4,900 per month. For non-doorman product, the median rent hit $3,500 — a 43% rise.
- Average rent for all unit types continued to soar. Rising 35%, pricing for studios increased the most, reaching $3,341. Rents for one-bedroom apartments climbed 32%, to $4,500. Meanwhile, rents for two- and three-bedroom homes rose 27% and 34% respectively, hitting $6,390 and $9,405.
Listings/Vacancy
- In August 2022, there were 5,709 active listings across Manhattan, up 7% from July but down 26% year-over-year.
- The Manhattan vacancy again rose slightly to 2.20% in August (vs. 2.09% in July). This marks the third consecutive month where the vacancy rate ticked up, which is unusual for the summer season. We attribute these increases to tenant pushback against record-high rents.
- Midtown East had the highest vacancy rate in August (at 2.99%), while vacancy was lowest in Gramercy (at 0.89%).
Leasing Activity
- With 5,385 new leases signed, August 2022 leasing activity increased 18% from July. However, 20% fewer leases were signed when compared to August 2021. The number of signed leases increased to the highest figure since last August and was just 9% lower than August 2019.
BROOKLYN
Rents
- Brooklyn’s median rent rose to $3,700 in August 2022, up 2% from July and 37% year-over-year, and reached its highest figure on record. The median rent figure for August 2021 was $1,000 lower, at $2,700.
- At $4,204, the Brooklyn average rent remained stable month-over-month and rose 34% annually. Two-bedroom units saw the largest annual rent growth, as pricing climbed 43% for this property type vs. last August.
Listings
- There were 3,349 active listings available in Brooklyn during August 2022, an 11% rise from July but an 18% decline when compared to last August.
- The average Brooklyn rental spent 70 days on the market, up 19% since July and 11% year-over-year. Record high prices caused days on market by rise double-digits versus both last month and last year.
Leasing Activity
- Hitting 1,448, the number of leases signed in August 2022 increased 17% when compared to July. It marks the most activity since August 2021, when 1,780 leases were executed.