Across the city, rents were up year-over-year for all product types.
“Many New York City tenants have reached the limit of what they are willing — or able — to pay. Rents remain plateaued at record highs, and there is a lot of ‘churn’ in the market. The Manhattan vacancy rate is at the highest level since June 2021, but available units are finding new residents quickly. Apartments are turning over and inventory is fresh. Quite simply, owners are making up for lost time.
Those who face lease renewals need to decide if they want to bite the bullet and accept the new rate or attempt to find a new, less-expensive apartment — which can be a challenging proposition. This is prime rental season, and due to a lack of available ‘for sale’ homes and higher interest rates, some would-be buyers remain in the tenant pool. The market has to find its true footing, but for now it’s a stand-off between renters and landlords. Someone is going to have to blink, it’s just a matter of when.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $4,500 per month in June 2023. This is flat when compared to May and a 7% rise year-over-year. Both the median and average rent remain at record highs — but recently growth has slowed.
- Year-over-year rent increases occurred across all unit types. Most notably, the average rent for three-bedroom homes experienced a double-digit annual gain, reaching $10,001 per month.
Listings/Vacancy
- In June 2023, there were 7,022 active listings across Manhattan, an 11% rise from May and a substantial 35% year-over-year. The number of listings has reached its highest level since August 2021. High rents along with some expiring ‘COVID leases’ have left many renters looking for new apartments.
- The average Manhattan apartment took 72 days to find a tenant in June, 27% faster than in May and 11% faster when compared year-over-year. The 27% month-over-month decline was the largest monthly decline on record as renters acted fast to sign leases.
- The Manhattan vacancy rate was 2.64% in June vs. 2.20% in May. This marks the largest monthly increase in the past four years. In addition, record-high prices and plenty of available inventory caused the rate to hit the highest level since June 2021.
- The East Village/Lower East Side had the highest vacancy rate in June (at 3.72%) while vacancy was lowest in Gramercy (at 1.17%).
Leasing Activity
- With 5,655 new leases signed in Manhattan, June 2023 leasing activity increased 9% from May and 16% year-over-year. The number of signed leases in doorman buildings reached the highest figure since July 2021 and increased 24% annually. With a 6% rise, non-doorman lease activity increased annually for the first time in four months.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,800 in June 2023, up 1% from May and a 9% rise year-over-year.
- At $4,396, the Brooklyn average rent also rose 1% month-over-month – and climbed 8% annually. Average and median rent both reached new record highs, surpassing the prior peak set in May.
Listings
- There were 4,092 listings available in Brooklyn during June 2023, a 17% rise from May and a 23% increase when compared to last year. Some expiring multi-year ‘COVID leases’ and new building openings increased the number of vacant apartments.
- The average Brooklyn rental spent 88 days on the market, up 29% from May and 52% from last year. This climb is unusual. Traditionally the number of days on market tends to fall during the summer season.
Leasing Activity
- At 1,314, the number of Brooklyn leases signed in June 2023 rose 1% when compared to May and 9% when compared to last June. It is likely that record-high rents diminished lease activity.