“New York’s rental market rolled into spring on a positive note for landlords. After remaining stalled for five consecutive months, the median rent in Manhattan climbed slightly in March and reached a new record for studio units. The number of active listings declined for the first time in seven months, while the vacancy rate remained unchanged from February. In Brooklyn, prices also rose slightly month-over-month while active listings fell. Signed leases in the borough rose considerably from February, which means apartment seekers are active and willing to sign on the dotted line.
However, the high rents in both boroughs may have caused some hesitation for tenants. Days-on-market increased 21% year-over-year in Manhattan, while in Brooklyn it climbed a substantial 41% over the same period. While strong pricing and traffic are good news for owners, the intense demand seen last summer, at least for now, remains in the past.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
- The median Manhattan rent was $4,250 per month in March 2023. After remaining unchanged for five consecutive months, rents have begun to rise, albeit by a slight 1% month-over-month. Pricing is also 10% higher when compared to March 2022.
- Average rent for all apartment types increased year-over-year. The percentage rise was in the double-digits for all bedroom counts except two-bedroom units. The $3,342 figure for studios is the first time pricing for any unit type exceeded the August 2022 peak.
- In March 2023, there were 5,835 active listings across Manhattan, a 3% decline from February and 2% year-over-year. This is the first annual decline in available listings in seven months.
- The average Manhattan apartment took 94 days to find a tenant in March, 8% shorter than in February but a 22% rise year-over-year. Both doorman and non-doorman properties saw annual increases in days-on-market.
- The Manhattan vacancy rate remained unchanged from February to March, at 2.18%. The rate experienced a minimal year-over-year increase, rising 0.33% when compared to March 2022. The vacancy rate has now been above 2% for ten consecutive months.
- Vacancies increased year-over-year across all Manhattan neighborhoods except for the Upper West Side, where the rate (again) experienced a slight decline. The East Village/Lower East Side had the highest vacancy rate in March (at 3.22%) while vacancy was lowest on the Upper East Side (at 1.22%).
- With 4,232 new leases signed in Manhattan, March 2023 leasing activity increased 14% from February and 9% year-over-year. This increase in signed leases is typical for the spring season.
- The median rent in Brooklyn was $3,640 in March 2023, up 4% from February and a 13% rise year-over-year. March marks 19 consecutive months of year-over-year rent growth in the borough.
- At $4,172, the Brooklyn average rent rose 3% month-over-month and 18% annually. After declining slightly from January to February, prices have again begun to climb.
- There were 3,132 listings available in Brooklyn during March 2023, a 2% decline from February but a 7% increase when compared to last year. March marked seven consecutive months of annual growth for active listings.
- The average Brooklyn rental spent 90 days on the market, a marginal 1% longer than in February but a substantial 41% rise from last year. Higher rents led to the largest annual days-on-market growth in nearly two years.
- At 1,210, the number of leases signed in March 2023 rose a notable 21% when compared to February and 1% year-over-year. March’s uptick in leasing, while typical for the season, occurred despite the climb in rents.