“In Manhattan, the vacancy rate ticked up from January to February as apartments took longer to find tenants and leasing activity slowed. These are all positive signs for apartment seekers looking for more choice and less-frenetic conditions. However, the median rent has remain unchanged since October 2022, which shows that owners still remain hesitant to reduce pricing.
Meanwhile in Brooklyn, rents in February cooled just enough to encourage tenants to take action. In contrast to Manhattan, the number of signed leases in the borough increased month month-over-month, hitting 1,000 for the first time since November.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $4,200 per month in February 2023. This figure has remained unchanged since October 2022 — five consecutive months. However, pricing remains 12% higher when compared to February 2022.
- Average rent for all apartment types increased year-over-year. Growth has slowed across the board, with prices rising by only single-digits for all bedroom counts except three-bedroom units. The 13% annual increase brought the average rent for this apartment size to $9,592.
Listings/Vacancy
- In February 2023, there were 6,020 active listings across Manhattan, up 3% from January and 37% year-over-year. Increased renter mobility, new introductions and rentals in currently-selling new condo properties are factors contributing to the above-average rental supply.
- The average Manhattan apartment took 102 days to find a tenant in February, 3% longer than in January and a 21% rise year-over-year. This is the longest days-on-market time the borough has experienced in two years.
- The Manhattan vacancy rose slightly to 2.18% in February vs. 2.16% in January. The rate also experienced a minimal year-over-year increase, rising 0.48% when compared to February 2022. The vacancy rate has now been above 2% for nine consecutive months.
- Vacancies increased year-over-year across all Manhattan neighborhoods except for the Upper West Side, where the rate saw a slight decline. The East Village/Lower East Side had the highest vacancy rate in February (at 3.25%), while vacancy was lowest on the Upper East Side (at 1.34%).
Leasing Activity
- With 3,704 new leases signed in Manhattan, February 2023 leasing activity declined 2% from January. However, activity jumped 38% versus last February, when leasing reached a two-year low.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,500 in February 2023, down 5% from January but a 13% rise year-over-year. February marks the 17th consecutive month of year-over-year rent growth in the borough.
- At $4,062, the Brooklyn average rent declined 4% month-over-month but rose 13% annually. While still higher on a year-over-year basis, prices have begun to fall as 2023 progresses.
Listings
- There were 3,182 listings available in Brooklyn during February 2023, a 1% rise from January and a 19% increase when compared to last year. February marked six consecutive months of annual growth for active listings.
- The average Brooklyn rental spent 89 days on the market — a marginal 1% longer than in January, but 9% fewer days than last year. Despite the increase in available listings, new units on the market promoted leasing activity.
Leasing Activity
- At an even 1,000, the number of leases signed in February 2023 climbed 5% when compared to January and 13% year-over-year. The number of signed leases hit four digits for the first time since November.