“The median Manhattan rent reached a new all-time high in March 2024, hitting $4,550 per month. The number of signed leases climbed when compared to February — which is typical as we enter spring — but was down when compared to last year, which shows current pricing has given some would-be tenants pause. Apartment seekers in the borough are also facing fewer choices, as the vacancy rate has reached the lowest level since May of 2022. The high-end doorman market continues to outperform, with a slight increase in leasing for these units, versus a decline for non-doorman product. Those with higher budgets, many of whom are likely potential homeowners waiting on the sidelines for improving rates, are the most active in today’s market.
In Brooklyn, the median monthly rent reached $3,988 — also a record high. Current interest rates have also had an impact on this side of the East River, as two and three-bedroom apartments each had double-digit price increases when looking year-over-year. This could be caused by a push from prospective buyers to rent comparable, larger product.
In today’s landscape, many tenants with more limited budgets have chosen to simply stay put or get creative in their search for more-affordable options. Meanwhile, some would-be buyers’ wait-and-see approach with the sales market has likely fueled a demand for larger, more-luxurious rentals. This contingent wants the space and lifestyle of a condo, co-op or townhome, but without the commitment.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $4,550 per month in March 2024 vs. $4,500 per month in February. Rental prices increased 1% month-over-month and 7% year-over-year. Median rent reached a new record high, skewed by the declining share of non-doorman leases.
- Average rent increased year-over-year for all unit types (studios to three-bedrooms). Strong demand for one-bedroom apartments drove rent to a new high of $4,702. One-bedrooms also claimed the highest market share in two years.
Listings/Vacancy
- In March 2024, there were 7,013 active listings across Manhattan, down 10% from February but up 20% year-over-year. From February to March, the market experienced the largest month-over-month decline in inventory since April 2022.
- The average Manhattan apartment took 47 days to find a tenant in March, compared to 52 in February — a 10% decline month-over-month and a 50% decline when compared to March 2023. Days on market was last lower in August 2019.
- The Manhattan vacancy rate was 2.00% in March, down slightly from February when the rate was 2.29%. Visible vacancy also declined annually for just the first time in nearly two years — and is at the lowest figure since May 2022. Rising rents have deterred renters from seeking new apartments.
Leasing Activity
- With 3,971 new leases signed in Manhattan, March 2024 leasing activity rose 11% when compared to February but declined 6% year-over-year. On an annual basis, doorman leases increased a marginal 1% while leases for non-doorman apartments fell 18%.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,988 in March 2024, up 1% since February and 10% year-over-year. Median rent is the borough is also nearly $1,000 higher (33%) when compared to March 2020.
- At $4,502, the average rent in Brooklyn in March increased 1% from February and rose 8% annually. March marked the 30th consecutive month of annual growth for median and average rent — both have reached new record highs.
Listings
- There were 3,655 active listings available in Brooklyn during March 2024, 2% fewer when compared to February. Active listings rose 17% year-over-year as slower annual lease activity caused availabilities to pile up.
- The average Brooklyn rental spent 41 days on the market in March. This is flat when compared to February’s figure but 49% fewer when looking year-over-year. New market supply since last March contributed to lower days on market.
Leasing Activity
- At 1,072, the number of leases signed in Brooklyn during March 2024 rose 9% from February but fell 11% annually. The monthly gain was typical of seasonality but the rise in leasing was lower than the previous five year average.