“The Manhattan rental market experienced a rebound as we entered 2024. The number of signed leases in the borough climbed a substantial 38% when compared with December and 4% year-over-year, largely driven by demand for luxury units. Compared to a year ago, leases in doorman buildings rose 9%, while in contrast, non-doorman leases declined 5%. Meanwhile, pricing ticked down from December to reach a median of $4,300 per month, but the increased appetite for high-end product pushed rents slightly higher year-over-year. In addition, the Manhattan vacancy rate reached an eight month low of 2.36% in January — but is still relatively high when compared to pre-Covid times.
Brooklyn was also on the move. The number of signed leases rose 37% when compared to December and just like Manhattan, 4% annually. Rents also climbed — both month-over-month and year-over-year — to reach a new all-time high median price of $3,950. Brooklyn apartments also found new occupants faster, as days-on-market decreased 15% month-over-month and 37% annually — to 44 days.
January is historically a strong month for New York City rentals, due in part to pent-up demand from the slower holiday season. Savvy New Yorkers know the best time to look for an apartment is in the winter, as many building owners are more generous with incentives to draw would-be tenants into the marketplace. These sweeteners might be reduced come spring. In addition, some potential buyers have chosen to rent for another year- to wait for the anticipated interest rate cuts to come later in 2024. All of these factors have played a part in the recent uptick in market activity.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $4,300 per month in January 2024, vs. $4,428 per month in December. Rental prices declined 3% month-over-month but rose 2% year-over-year. Market-wide median rent increased year-over-year for the 29th consecutive month, but has decreased monthly three of the four past months.
- Average rent increased year-over-year for all unit types (studios to three-bedrooms). Three bedroom average rent increased most, up 15% year-over-year to reach $10,424. Pricing for all unit types remain below their respective peaks.
Listings/Vacancy
- In January 2024, there were 8,177 active listings across Manhattan, down 3% from December but up a substantial 40% year-over-year. This marks the tenth consecutive month of annual inventory gains.
- The average Manhattan apartment took 56 days to find a tenant in January, compared to 55 in December — a slight 2% rise month-over-month but a 43% decline when compared to January 2023. This January was the third consecutive month where days-on-market decreased over 40% annually.
- The Manhattan vacancy rate was 2.36% in January 2024, down minimally from December when the rate was 2.40%. However, vacancy rose annually for the 17th consecutive month. Despite the annual growth, visible vacancy reached an eight month low — typical of seasonality. Many people postpone their apartment search until after the December holiday season.
Leasing Activity
- With 3,929 new leases signed in Manhattan, January 2024 leasing activity climbed 38% when compared to December and 4% year-over-year. This marks the largest monthly increase in fifteen months. Compared to a year ago, doorman activity increased 9%, but non-doorman activity declined 5%.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,950 in January 2024, up 6% month-over-month and 7% year-over-year.
- At $4,480, the average rent for Brooklyn in January rose 5% from December and 6% annually. January marked the 28th consecutive month of annual growth for median and average rent. Both figures surpassed their previous peaks, reaching new record highs.
Listings
- There were 3,304 active listings available in Brooklyn during January 2024, 3% fewer when compared to December. Recent stronger leasing activity has led to a decrease in the number of available units. However, the number of active listings rose 5% year-over-year.
- The average Brooklyn rental spent 44 days on the market in January. This is 15% less versus December’s figure and 37% less when compared to last year.
Leasing Activity
- At 987, the number of leases signed in Brooklyn during January 2024 rose a substantial 37% from December and 4% annually. The December to January increase was greater than previous post-holiday increases.