NYC Residential Rental Market Report: May 2026
“Much to the frustration of tenants, Manhattan’s median rent reached yet another new all-time high in May, hitting $5,125 as demand continues to outpace a persistently constrained supply environment. We’re seeing record pricing across multiple unit types, particularly in studios and one-bedrooms, as renters compete for a shrinking pool of available apartments. Vacancy remains historically tight and listings are down sharply year-over-year, driven by limited new development, a high rate of lease renewals, and city policy-driven outcomes that have slowed new construction and reduced inventory coming online. As we enter the peak summer leasing season, urgency has accelerated decision-making, pushing days on market lower and keeping this upward pressure on rents.
Brooklyn has also reached a new all-time high for rents, with the median price jumping to $4,347 as the borough continues to see strong, sustained demand. Price growth has reached every unit type, which shows just how competitive the market has become. While inventory ticked up slightly from April, it remains below last year’s level, again reflecting both ongoing supply issues and the impact of policy changes that have made it more challenging to deliver new rental housing. Add these factors to the typical seasonal demand, and it causes available homes to rent faster, while signed lease volume shrinks due to the lack of available options. Currently, we are facing the perfect storm of challenges for apartment seekers.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $5,125 per month in May 2026 – it ticked up 1% versus $5,099 in April to reach yet another new all-time high. Pricing was also up 7% annually.
- Studio and one-bedroom apartments each reached new average rent records in May, at $3,999 and $5,305 respectively, each surpassing the prior records set in April. Two- and three-bedroom average rents also rose year-over-year, with three bedrooms posting double-digit annual gains for the seventh consecutive month.
Listings/Vacancy
- In May 2026, there were 4,956 active listings across Manhattan, up 4% versus April. However, listings declined 21% year-over-year, marking the fourth consecutive month of double-digit declines. A shortage of vacant units plus limited new construction has failed to keep supply in pace with demand across most Manhattan submarkets. The modest increase from April is typical for this time of year, reflecting the fact that many leases renew in spring.
- Overall, the average Manhattan apartment took 36 days to find a tenant in May, down 23% month-over-month and 8% annually. The sharp decline versus April aligns with typical late-spring trends, as renter urgency increased ahead of summer move-in dates. Meanwhile, the year-over-year trend reflects tightening conditions, with fewer options speeding up the time between listing and lease signing.
- The Manhattan vacancy rate was 1.57% in May, up slightly from April when the rate was 1.55%. In contrast, it was lower than the rate in May 2025, when it reached 1.65%. These sub 2% vacancy rates mean that for every 100 units in Manhattan, fewer than two are sitting available at any given moment.
Leasing Activity
- With 4,655 new leases reported signed in Manhattan, May 2026 activity ticked down 2% when compared to April and 6% annually. May underperformed both last month and last year, reversing the usual seasonal pattern where May outpaces April. This shortfall points to a lack of available units rather than diminished demand.
BROOKLYN
Rents
- The median rent in Brooklyn was $4,347 per month in May 2026. Median rent rose 6% both month-over-month and year-over-year. Rental pricing in the borough has now reached a new all-time high, surpassing the previous record of $4,296 that was set in February of this year.
- Average rent rose across all unit types, with studios, one-bedrooms, and two-bedrooms each reaching new all-time highs. Year-over-year, pricing for two-bedroom apartments led the gains, rising 11% to reach $5,831 per month.
Listings
- There were 4,283 active listings in Brooklyn during May 2026, up 12% versus April but down 5% year-over-year. This marks the third consecutive month where supply contracted on an annual basis.
- The average Brooklyn rental spent 37 days on the market in May. This is a 36% decline from April and 5% on an annual basis. The substantial month-over-month drop reflected tighter supply and the typical seasonal pickup in renter urgency.
Leasing Activity
- At 1,293, the number of leases signed in Brooklyn during May 2026 was down 12% from April and 2% annually, thus ending eighth consecutive months of annual growth. Leasing activity also bucked the typical season pattern as May activity usually rises from April.
- Leasing activity was split across unit types, with studios and one-bedrooms posting annual gains while larger units saw a pullback. The number of studio leases rose 12% year-over-year to 227 signed leases, accounting for the largest share of all signings on record. Leases for one-bedrooms edged up 2%, while two- and three-bedroom activity declined 5% and 25%, as average rents in both segments rose sharply.
