“Rents in both Manhattan and Brooklyn reached all-time highs during May. Leasing activity also rose, which is typical as we begin the traditionally-busy summer season. In the borough of Manhattan especially, this increase in signed leases was focused on ‘doorman’ buildings, which illustrates tenants are seeking — and willing to pay for — luxury product. Higher rents and a brisk market pace can be daunting to would-be renters. However, due to the fact the number of available apartments has increased month-over-month and substantially versus last year, they have plenty of options. For a multitude of lifestyle-driven or financial reasons, the city is on the move.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $4,500 per month in May 2023. This is a 2% rise when compared to April and a 7% rise year-over-year. Both the median and average rent reached new records in May.
- Annual rent growth occurred across all unit types with studio and one-bedroom average rent setting new records, hitting $3,414 and $4,604, respectively. Two- and three-bedroom average rents still below their peaks seen last fall.
Listings/Vacancy
- In May 2023, there were 6,329 active listings across Manhattan, a 2% rise from April and 15% year-over-year. The number of listings has reached its highest level since August 2021. Due to rising rents, a greater number of renters are opting out of renewals in hopes of finding better deals elsewhere.
- The average Manhattan apartment took 87 days to find a tenant in May, 15% shorter than in April and level when compared year-over-year. Increased market activity is typical as the busy ‘summer season’ commences.
- The Manhattan vacancy rate was 2.20% in May. It increased slightly month-over-month for the first time since February and reached its highest level in five months. Given how strong lease activity was during the month, the higher vacancy stat reflects renters’ response to record-high pricing.
- The East Village/Lower East Side had the highest vacancy rate in May (at 2.90%) while vacancy was lowest in Gramercy (at 0.77%).
Leasing Activity
- With 5,180 new leases signed in Manhattan, May 2023 leasing activity increased 14% from April and 10% year-over-year. The annual increase was solely due to the ‘doorman’ market as non-doorman lease activity was actually lower than May 2022.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,769 in May 2023, up 5% from April and a 11% rise year-over-year.
- At $4,353, the Brooklyn average rent rose 3% month-over-month and 10% annually. Both average and median rent reached new record highs, surpassing the prior peak set in July 2022 by 3%.
Listings
- There were 3,496 listings available in Brooklyn during May 2023, a 5% rise from April and again a substantial 30% increase when compared to last year. As typical per the season, active listings increased month-over-month, as expiring leases and rising prices sent renters looking for new homes.
- The average Brooklyn rental spent 68 days on the market, declining 27% vs. April but increasing 33% from last year. As is the case across the East River, apartments are finding tenants more quickly as the summer season begins.
Leasing Activity
- At 1,407, the number of leases signed in May 2023 rose 13% when compared to April and 19% when compared to last year. The borough’s rental market is increasingly active.