Summer’s end found Manhattan rents at an all-time high.
“The New York City rental market continued to be extremely active throughout August 2023. Both median rent and the number of signed leases climbed versus last August in Manhattan and Brooklyn, which illustrates that higher prices have not yet caused tenants to pump the brakes. It is important to note that pricing increased the most for studio apartments in Manhattan, where the average rent hit $3,568 per month — an all-time high. On average, renters in the borough are now paying 37% more for a studio than they did during August 2020 — the peak of the ‘Covid-deal’ era. This rise could be the result of seasonal demand related to the start of college for students, or a new job for post-grads. It will be interesting to see if this trend continues as we enter fall.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $4,495 per month in August 2023. This is flat (just $1 less) when compared to July but a 3% rise vs. last August. However, 3% was the smallest annual percentage growth in 22 months.
- Average rent increased across all bedroom types. At $3,568, pricing for studios reached a new record high, surpassing $3,500 for the first time. Average studio rent is now 37% higher than the low in August 2020.
Listings/Vacancy
- In August 2023, there were 8,331 active listings across Manhattan, up 19% from July (at 7,013) and a notable 46% rise year-over-year. Active listings are now at their highest level since 2021.
- The average Manhattan apartment took 80 days to find a tenant in August, 4% shorter when compared to July but consistent with August 2022. At 73 days, non-doorman days on market decreased for only the third time this year as higher rent has driven renters towards non-doorman apartments.
- The Manhattan vacancy rate was 2.50% in August. It fell slightly from July (at 2.60%) marking the second consecutive month of month-over-month declines. Vacancy is still higher year-over-year however, as August 2022’s rate was 2.20%.
- Midtown East had the highest vacancy rate in August (at 3.36%) while vacancy was lowest in Gramercy (at 1.17%).
Leasing Activity
- With 6,036 new leases signed in Manhattan, August 2023 leasing activity increased 2% from July and 12% year-over-year. This is the highest figure in two years and the eleventh consecutive month with an annual gain.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,896 in August 2023, down a slight 1% month-over-month but up 5% annually.
- At $4,398, the average rent for Brooklyn in August remained consistent with July — and rose 5% year-over-year. August marked the twenty-fourth consecutive month of average annual rent growth in the borough.
Listings
- There were 3,928 active listings available in Brooklyn during August 2023, a decline of 4% from July — and the largest month-over-month decrease in eight months. However, there are 17% more homes on the rental market when compared to last year.
- The average Brooklyn rental spent 51 days on the market, declining 7% vs. July and 27% from last year. Overall rising prices pushed renters to sign leases, driving inventory to an eight month-low.
Leasing Activity
- At 1,425, the number of leases signed in August 2023 rose 6% vs. July in an ‘end of summer’ climb, but the number was down 2% when compared to last year. Leasing activity remains below pre-pandemic levels, with August activity down 15% versus August 2019.