NYC Residential Rental Market Report: Nov. 2023
New leases fell year-over-year, signaling that high prices may be leading many tenants to stay put.
“In November, leasing activity declined — falling 9% annually in Manhattan and a substantial 28% in Brooklyn. While we typically see a drop in signed leases throughout the last quarter, due in large part to the holiday season, the fact the volume of new leases fell on a year-over-year basis means that high prices may be causing many tenants to stay put. Most recently, two and three-bedroom units have seen rents rise to new all-time highs in both boroughs. However, it’s important to note that activity was limited and focused on more-luxurious apartments in November. In addition, some leases may have included incentives, which are not reflected in the reported rent.
Nevertheless, current mortgage rates are driving many potential buyers to rent. With the recent announcement from the Fed that interest rates may see some cuts in the coming year, this could change. Even a slight downward tick would be positive news for would-be homeowners – and could also ease pressure on the rental market, especially at the high end.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $4,457 per month in November 2023. Rental prices have risen 4% when compared to October and 6% year-over-year. However, rents are still lower that they were during the summer months.
- Average rents increased year-over-year for all unit types. With an average rent of $7,060 and $11,078 respectively, Manhattan two and three-bedroom pricing reached new record highs. Rentals skewed towards more luxurious apartments as mortgage rates are driving many potential buyers to rent.
- With an average rent of $10,914, SoHo/Tribeca was again the most expensive Manhattan neighborhood for renters. Inwood/Washington Heights was the most affordable, where the rent was $2,916 on average.
Listings/Vacancy
- In November 2023, there were 8,684 active listings across Manhattan, down 3% from October but up a noteworthy 40% year-over-year. Higher rents have deterred leasing activity, keeping inventory elevated.
- The average Manhattan apartment took 35 days to find a tenant in November, compared to 95 in October — a 63% drop month-over-month and a 64% decline when compared to November 2022. With less overall activity, renters gravitated to newer-to-market listings.
- The Manhattan vacancy rate was 2.51% in November, down slightly from October when the rate was 2.56%. However, visible vacancy rose year-over-year for the 15th consecutive month to a three-year November high.
Leasing Activity
- With 3,038 new leases signed in Manhattan, November 2023 leasing activity fell a substantial 34% from October. Reported leases signed also fell 9% annually, the largest year-over-year decline since September 2022.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,900 in November 2023, up 4% month-over-month and 11% year-over-year. November marked the 26th consecutive month of annual rent growth. Rents in Brooklyn have reached their second-highest median on record.
- At $4,442, the average rent for Brooklyn in November climbed 3% from October and 9% annually. Average rent increased year-over-year for all bedroom types. At $4,905 and $6,653 respectively, pricing for Brooklyn two and three-bedroom units have reached new record highs. This is due, in part, to a significant number of leases signed at luxury condominiums.
Listings
- There were 3,882 active listings available in Brooklyn during November 2023, 4% fewer when compared to October. However, the number of available listings rose 17% year-over-year to reach the highest November level since 2020.
- The average Brooklyn rental spent 36 days on the market in November, 54% less versus October and 59% less when compared to last year. As in Manhattan, transactions were focused on the newest and most-desirable product.
Leasing Activity
- At 769, the number of leases signed in Brooklyn during November 2023 fell 32% from October. In addition, the volume of reported leases fell 28% year-over-year to their lowest November number in more than five years.
