“Conditions in New York’s rental market have reached a turning point. With October’s overall Manhattan median rent falling 6% from September and available inventory at a fourteen-month high, tenants have more negotiating power and choice. This shift was enough to substantially boost activity. The number of leases signed rose 63% month-over-month, which is atypical for the season. Without question, pricing is still expensive for many. However, when compared to the highly-competitive environment we experienced this summer, apartment seekers have finally gained some relief.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- October 2022’s overall median Manhattan rent of $4,200 marked a 6% decline from September but remains 27% higher when compared to last year. While rents are still up on an annual basis, October marks the largest month-over-month decline in rents since November 2020.
- The drop in median rents from September to October was caused by a 9% decline in pricing for non-doorman buildings. In contrast, rents were up 3% for doorman product.
Listings/Vacancy
- In October 2022, there were 6,287 active listings across Manhattan, up 7% from September and a substantial 29% year-over-year. Available inventory has increased to a 14-month high.
- The average Manhattan apartment took 92 days to find a tenant in October, 2% longer than in September and an 18% rise year-over-year. With rents still high and inventory on the rise, days-on-market rose to the one of the highest levels in nearly two years.
- The Manhattan vacancy again rose slightly to 2.26% in October (vs. 2.23% in September). As was the case with inventory, the vacancy rate reached the highest level in 14 months. October also marked the fifth consecutive month where the vacancy rate was above 2%, unprecedented in the decade prior to the pandemic.
- The vacancy rate increased year-over-year across all Manhattan neighborhoods. Midtown West had the highest vacancy rate in October (at 3.03%) while vacancy was lowest in Gramercy (at 1.62%).
Leasing Activity
- With 4,904 new leases signed, October 2022 leasing activity rose a notable 63% from September. In addition, 24% more leases were executed when compared to October 2021. When compared to a pre-pandemic October 2019, market activity is also up.
BROOKLYN
Rents
- Brooklyn’s median rent fell to $3,600 in October 2022, down 2% from September but up 26% year-over-year. October marked the second consecutive monthly decrease for median rent.
- At $4,033, the Brooklyn average rent also fell 2% month-over-month but is still up 20% annually. While both median and average rent are still higher by double digits year-over-year, both are currently on a downward trend.
Listings
- There were 3,395 active listings available in Brooklyn during October 2022, a 2% increase from September and a 9% rise compared to last year.
- The average Brooklyn rental spent 77 days on the market, 13% fewer days than in September but 7% more than last October.
Leasing Activity
- At 1,391, the number of leases signed in October 2022 jumped a whopping 90% when compared to September and 31% year-over-year. The Brooklyn rental market was much more active in October thanks to easing prices.