“In Manhattan, landlords continue to push the envelope in terms of pricing. February’s median rent rose both from January and year-over-year to reach $4,500 per month — matching the all-time high seen last spring. Signed leases declined when compared to January and last year, which could mean some tenants simply feel priced out of the borough’s current market.
However, it is interesting to note that the number of reported leases in Manhattan doorman buildings rose 10% on an annual basis despite overall leasing activity slowing over the same period, which is evidence that more tenants are seeking ‘premium’ apartments. Many in this contingent are likely would-be buyers who are waiting on the sidelines for more favorable interest rates and have chosen to upgrade their rental in the meantime.
In Brooklyn, the median rent of $3,950 remained unchanged from January but climbed 13% year-over-year. The number of signed leases dipped over both periods, but only slightly — a sign that higher rents in the borough haven’t yet had a significant impact on tenants’ willingness to transact.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $4,500 per month in February 2024 — versus $4,300 per month in January. Rental prices increased 5% month-over-month and 7% year-over-year. Doorman building median rent rose 6% annually to reach $5,001 but remains 1% below its peak from July. Non-doorman building rent rose 2% year-over-year to $3,400 but is 8% below the July peak.
- Average rent increased year-over-year for all unit types (studios to three-bedrooms). Three-bedroom average rent increased the most, up 10% year-over-year. One-bedroom apartments reached a new record for average rent — at $4,633 — and claimed the highest market share since April 2020.
Listings/Vacancy
- In February 2024, there were 7,769 active listings across Manhattan, down 5% from January but up 29% year-over-year. This marks the 11th consecutive month of annual inventory gains.
- The average Manhattan apartment took 52 days to find a tenant in February, compared to 56 in January — a 7% decline month-over-month and a 49% decline when compared to February 2023.
- The Manhattan vacancy rate was 2.29% in February 2024, down slightly from January when the rate was 2.36%. However, vacancy rose annually for the 18th consecutive month. In February 2023, the rate was minimally lower, at 2.18%.
Leasing Activity
- With 3,571 new leases signed in Manhattan, February 2024 leasing activity fell 9% when compared to January and 4% year-over-year. On an annual basis, leases signed in doorman buildings increased 10%, while non-doorman activity fell 23%. Non-doorman market share has now declined for five consecutive months.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,950 in February 2024, unchanged from January but up 13% year-over-year.
- At $4,444, the average rent for Brooklyn in February declined 1% from January but rose 9% annually. February marked the 29th consecutive month of annual growth for median and average rent.
Listings
- There were 3,716 active listings available in Brooklyn during February 2024, 12% more when compared to January and a 17% increase year-over-year. Active listings were higher as more new rental product entered the market.
- The average Brooklyn rental spent 41 days on the market in February. This is 7% fewer days than January’s figure and 54% fewer when compared to last year.
Leasing Activity
- At 979, the number of leases signed in Brooklyn during February 2024 declined a slight 1% from January and 2% annually. This is a smaller decline when compared to previous January-to-February decreases. Despite rising rents, leasing activity kept a close pace with last year and last month.