“Rents in Manhattan remain plateaued at record highs. While this is positive news for landlords, evidence shows prices have likely risen to a point where they are out of reach for many tenants. The Manhattan vacancy rate has increased for two consecutive months, which is unusual for the summer season. In addition, the number of reported leases signed fell 7% month-over-month, and days-on-market rose 5% over the same time period.
Across the East River, the hot rental market conditions continue in Brooklyn. In July, rents climbed 4% month-over-month, while the number of signed leases rose a slight 1%. However, the average apartment took 2% longer to rent versus June.
With the rise of remote work, some people no longer need to be tethered to a specific location. While the opportunities and lifestyle available in New York remain appealing to many, how far can landlords push until tenants seek other alternatives? Whether July’s Manhattan findings are a temporary blip—or the start of a longer-term trend—is the million-dollar question.”
—Gary Malin, Chief Operating Officer, The Corcoran Group
- July 2022’s median Manhattan rent of $4,250 remained unchanged from June but was 33% higher compared to last year. July marked the eleventh consecutive month of year-over-year median rent growth.
- For units in doorman buildings, median rents increased 26% annually to reach $4,900 per month. For non-doorman product the median rent hit $3,500—a 37% rise.
- As usual, significant year-over-year average rent gains were seen across the board, regardless of apartment size. Pricing for three-bedroom homes increased the most, rising 35% to $9,399. Rents for one-bedroom apartments climbed 29% to $4,410. Meanwhile, rents for both studio and two-bedroom homes rose 27%, hitting $3,208 and $6,136, respectively.
- In July 2022, there were 5,346 active listings across Manhattan, up 3% from June but down 48% year-over-year.
- The Manhattan vacancy rose slightly to 2.09% in July (vs. 2.03% in June). This has been the second consecutive month where the vacancy rate ticked up, which is unusual for the summer season. We attribute these increases to tenant push-back against record-high rents.
- Midtown East had the highest vacancy rate in July (at 3.06%) while vacancy was lowest in Gramercy (at 0.85%).
- With 4,555 new leases signed, July 2022 leasing activity declined 7% from June. In addition, 44% fewer leases were signed when compared to July 2021.
- Brooklyn’s median rent rose to $3,645 in July 2022, up 4% from June and 35% year-over-year. Median rent has increased year-over-year for 10 consecutive months and has reached a new high in the borough.
- At $4,217, the Brooklyn average rent climbed 3% month-over-month and 34% annually. Rents for three-bedroom homes saw the most annual growth, as prices jumped 48% vs. last July.
- There were 3,010 active listings available in Brooklyn during July 2022, a 10% decline from June and a 41% drop compared to last July.
- The average Brooklyn rental spent 59 days on the market—up 2% since June and 16% year-over-year. Days on market increased for all unit types except for one-bedrooms, where days on market declined for the third consecutive month.
- There were 1,236 leases signed in Brooklyn during July 2022, 1% more than in June but 41% fewer than were executed in July 2021. Contrasting Manhattan’s, leasing activity climbed in Brooklyn (albeit slightly) month-over-month.