In Manhattan, December leasing activity closely matched 2019 (pre-pandemic) levels while median rent remained unchanged for the past 90 days, both promising signs of ‘normalcy’ in the market. However, inventory and vacancy rates are still higher than last year, which provides additional options for renters.
Across the East River, Brooklyn rents also remained stable when compared to November. Available inventory increased year-over-year, but so did the number of signed leases, which indicates home-seekers are active this winter. The minimal monthly gains in rent have fostered stronger than usual market activity in the borough.
MANHATTAN
Rents
- December 2022’s overall median Manhattan rent of $4,200 was unchanged from November (and October) and marks three consecutive months where rents have remained stable. However, pricing remains 17% higher when compared to December 2021.
- When examining average rents, year-over-year pricing rose across all apartment sizes, from studios to three-bedrooms. At 16%, the largest increase in average rent occurred for one-bedroom homes. However, the rate of annual rent growth has slowed dramatically from the 30% + gains experienced in Spring and Summer 2022.
Listings/Vacancy
- In December 2022, there were 5,877 active listings across Manhattan, down 6% from November but up a substantial 49% year-over-year. The month-over-month dip in available inventory is typical for the season.
- The average Manhattan apartment took 97 days to find a tenant in December, 1% less than in November but a 3% rise year-over-year. Value-seeking tenants signed leases faster in non-doorman buildings (after 85 days on average) than in typically more-expensive doorman properties (after 105 days on average).
- The Manhattan vacancy fell slightly to 2.20% in December (vs. 2.26% in November). December also marked the seventh consecutive month where the vacancy rate was above 2%.
- The vacancy rate increased year-over-year across all Manhattan neighborhoods. The East Village–Lower East Side had the highest vacancy rate in December (at 2.90%), while vacancy was lowest in Gramercy (at 1.30%).
Leasing Activity
- With 3,166 new leases signed in Manhattan, December 2022 leasing activity declined 5% from November. In contrast, 13% more leases were executed when compared to December 2021.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,525 in December 2022, up a slight 1% from November and 18% year-over-year. December marks the 15th consecutive month of year-over-year rent growth in the borough.
- At $4,045, the Brooklyn average rent was unchanged month-over-month but was up 12% annually. While both median and average rent are still higher by double digits year-over-year, both have plateaued in recent months.
Listings
- There were 3,170 listings available in Brooklyn during December 2022, a 5% decline from November but a 14% rise when compared to last year. Active listings fell to the lowest level since July.
- The average Brooklyn rental spent 86 days on the market — 12% fewer days than in November, but 18% more than last December. When looking at property types, studio apartments saw a notable 71% year-over-year increase in days on market and took an average of 94 days to rent.
Leasing Activity
- At 803, the number of leases signed in December 2022 fell 25% when compared to November but rose 7% year-over-year. The month-over-month decline in leasing is typical of seasonality – while signed leases rose annually for the third straight month.