Mid-summer demand is high for rentals across all corners of the city.
“With many leases timed to expire during summer and the last of the ‘Covid deals’ coming to an end, this season has been exceptionally active for the New York City rental market, even when compared to the intense conditions found last year. Quite simply, we are seeing strong demand across all boroughs and property types.
Fresh inventory hits the market daily and tenants tend to secure their new apartments quickly, even as rents remain at or near all-time highs. It’s interesting to note that renters acted fast to sign leases in Brooklyn, as the average apartment in the borough spent only 55 days on the market, versus 83 days across the East River.
The Manhattan luxury market also outperformed. The number of leases signed in ‘doorman’ buildings rose 34% annually, while days-on-market fell 9%. This jump in activity is despite the fact median rent for these units increased 3% over the same period to $5,065, a new record. Despite the price sensitivity felt by many New Yorkers, there is a segment of tenants — some who have chosen to delay their home purchase — that are willing to pay for premium product.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $4,496 per month in July 2023. This is flat (just $4 less) when compared to June but a 6% rise year-over-year. The median rent in doorman buildings in the borough increased 3% year-over-year to $5,065 — a new record.
- Annual rent growth occurred across all unit types except for three-bedroom homes, where — in contrast — average pricing declined 2%. Average rents increased the most year-over-year for studio units, where they climbed 6% to reach $3,396.
Listings/Vacancy
- In July 2023, there were 7,013 active listings across Manhattan, about level with June (at 7,022) but a substantial 31% rise year-over-year. High rents along with a large number of expiring summer leases brought an influx of apartments to the market.
- The average Manhattan apartment took 83 days to find a tenant in July, 15% longer than in June but 2% shorter when compared year-over-year. Renters acted fast to sign doorman leases, as days on market declined 9% annually for this property type. For non-doorman buildings, days on market increased 7% compared with last July.
- The Manhattan vacancy rate was 2.60% in July. It declined slightly from June (at 2.64%) to mark the first month-over-month decline since January. Vacancy is still higher year-over-year however, as July 2022’s rate was 2.09%.
- Murray Hill/Kips Bay had the highest vacancy rate in July (at 3.46%) while vacancy was lowest in Gramercy (at 1.25%).
Leasing Activity
- With 5,914 new leases signed in Manhattan, July 2023 leasing activity jumped 30% from June and rose 5% year-over-year. This is the highest lease figure in nearly two years and the tenth consecutive month of annual gains.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,926 in July 2023, up 3% month-over-month and 8% year-over-year. Median rent in the borough reached a new record high as it surpassed June’s figure.
- At $4,395, July’s Brooklyn average rent remained consistent with June and rose 4% annually. This figure surpasses the previous peak from July 2022. July marked the twenty-third consecutive month of average annual rent growth.
Listings
- There were 4,103 listings available in Brooklyn during July 2023, an increase of just 11 listings from June but a 36% increase when compared to last year.
- The average Brooklyn rental spent 55 days on the market, declining 38% vs. June and 7% from last year. This low figure is typical for July as a large number of summer lease expirations caused an urgent need for many renters to secure new homes.
Leasing Activity
- At 1,342, the number of leases signed in July 2023 rose 2% vs. June and 9% when compared to last year. Despite the increase, there were still 25% fewer leases signed this July than in pre-pandemic July 2019.