NYC Residential Rental Market Report: January 2023
“January was an active time for leasing in both Manhattan and Brooklyn when compared to the preceding two ‘holiday’ months, which is a welcome return to the ebbs-and-flows typical for the season. Manhattan landlords are experiencing just enough winter traffic that they don’t feel compelled to reduce rents. Meanwhile, when compared to the intense conditions found during summer 2022, apartment seekers in the borough are seeing just enough value that they are willing to transact. While owners and tenants are each looking at conditions through a different lens, the remarkably steady rents and vacancy rate indicate a state of equilibrium in the Manhattan market. Meanwhile in Brooklyn, a recent uptick in rents has slowed leasing activity. The gap in pricing between the two areas continues to narrow.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- In January 2023, the median Manhattan rent remained at $4,200 per month. This marks four consecutive months where rents have plateaued without any adjustments — up or down. However, pricing remains 17% higher when compared to January 2022.
- Average rent for all apartment types increased by double digits year-over-year. The rise was highest for studio units, which climbed 17% to $3,192. All apartment sizes have seen rents fall from their respective peaks. Three-bedroom average rent was down the most, 16% lower than its high in October 2022.
Listings/Vacancy
- In January 2023, there were 5,824 active listings across Manhattan, down 1% from December but up 20% year-over-year. January marks the fifth consecutive month of annual inventory gains.
- The average Manhattan apartment took 99 days to find a tenant in January, 2% longer than in December and a 29% rise year-over-year. Tenants seeking value signed leases faster in non-doorman buildings (after 94 days on average) than in typically more-expensive doorman properties (after 102 days on average).
- Manhattan vacancy fell slightly to 2.16% in January (vs. 2.20% in December). The rate experienced a minimal year-over-year increase, rising 0.58% compared to January 2022. While vacancy tightened month-over-month, January marked the eighth consecutive month where the vacancy rate was above 2%.
- The vacancy rate increased year-over-year across all Manhattan neighborhoods. Midtown East had the highest vacancy rate in January (at 2.82%), while vacancy was lowest on the Upper East Side (at 1.42%).
Leasing Activity
- With 3,768 new leases signed in Manhattan, January 2023 leasing activity increased 19% from December. In addition, 31% more leases were executed when compared to January 2022. After declining annually through most of 2022, lease activity has now increased on an annual basis for four consecutive months.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,695 in January 2023, up 5% from December and 23% year-over-year. January marks the 16th consecutive month of year-over-year rent growth in the borough. Brooklyn rents have returned to the peak levels seen last summer.
- At $4,220, the Brooklyn average rent rose 4% month-over-month and 25% annually. After plateauing in recent months, Brooklyn rents are again on the rise.
Listings
- There were 3,145 listings available in Brooklyn during January 2023, a slight 1% decline from December but a 24% rise when compared to last year.
- The average Brooklyn rental spent 88 days on the market, 2% longer than in December, but 4% fewer days than last year. Days on market decreased annually for all unit types except for studios.
Leasing Activity
- At 953, the number of leases signed in January 2023 climbed 19% when compared to December but fell 4% year-over-year. Despite the monthly increase, signed lease figures in January were below previous years as high prices have slowed the Brooklyn rental market.
