“In December, the Manhattan and Brooklyn rental markets saw pricing, leasing activity, and inventory tick down when compared to November. Conditions eased in part due to the holiday season, but also because many tenants are choosing to stay put if at all possible in the face of high prices. This lack of mobility impacts the number of new units that hit the marketplace. At 2.40%, the vacancy rate still remains high for Manhattan standards. In order to drive more would-be renters to transact, continued price adjustments and the use of concessions by landlords will likely be necessary during the remainder of winter.
Despite the slight month-over-month pricing declines, it’s important to note that current rents are still higher in both boroughs when compared to a year ago. The median rent rose 5% year-over-year in Manhattan and is now 53% higher than it was in December 2020, when pricing was at its pandemic-related low. December rents climbed 6% in Brooklyn, marking the 27th consecutive month of annual median rent growth. Increasingly, those who find themselves priced out of the most in-demand areas are exploring new neighborhoods in the outer boroughs — especially those near subway lines — in order to bring the cost of a new rental apartment within reach.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $4,428 per month in December 2023, vs. $4,457 per month in November. Rental prices declined 1% month-over-month but rose 5% year-over-year. Median rent is now 53% higher than December 2020, when median rental pricing fell to its pandemic-related trough.
- Average rent increased year-over-year for all unit types, from studios to three-bedrooms. Three-bedroom average rent increased the most, up 10% year-over-year, to reach $10,354.
Listings/Vacancy
- In December 2023, there were 8,402 active listings across Manhattan — down 3% from November but up a substantial 43% year-over-year. With high rents dampening leasing activity, active listings have reached three-year high for the month of December.
- The average Manhattan apartment took 55 days to find a tenant in December, compared to 35 in November — a 57% rise month-over-month but a 43% decline when compared to December 2022. With slower activity, renters gravitated to newer-to-market listings, while other less-desirable units — or those perceived to be less of a value — remained.
- The Manhattan vacancy rate was 2.40% in December 2023, down slightly from November when the rate was 2.51%. However, visible vacancy rose year-over-year for the 16th consecutive month.
Leasing Activity
- With 2,850 new leases signed in Manhattan, December 2023 leasing activity fell 6% from November and 10% year-over-year. This 10% drop is the largest annual percentage decline in over a year. Compared to a year ago, leasing activity in doorman buildings decreased just 3% but the number of non-doorman leases fell 21%.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,720 in December 2023, down 5% month-over-month but up 6% year-over-year. December marked the 27th consecutive month of YOY growth for median rent. Despite this consistent annual growth, median rent decreased monthly in four of the past five months.
- At $4,280, the average rent for Brooklyn in December fell 4% from November but rose 6% annually. Average rent increased year-over-year for all bedroom types. One-bedrooms registered the smallest year-over-year gain at just 2%. With many would-be buyers still on the sidelines, three-bedrooms saw the largest (18%) increase in average rent due to demand.
Listings
- There were 3,411 active listings available in Brooklyn during December 2023, 12% fewer when compared to November. However, the number of active listings rose 8% YOY to their highest December level since 2020.
- The average Brooklyn rental spent 52 days on the market in December. This is 43% more versus a very low November figure but 27% less when compared to last year.
Leasing Activity
- At 723, the number of leases signed in Brooklyn during December 2023 fell 6% from November and 10% year-over-year. Reported signed leases decreased annually for the third consecutive month to reach their lowest December figure in over five years.