NYC Residential Rental Market Report: October 2023
Leasing activity slowed on both sides of the East River. In Brooklyn, the number of active listings for rent hit a three-year high.
“The pace of the Manhattan rental market slowed during October, which is typical after the annual summer rush. However, it is interesting to note that this slowdown has reached the luxury segment of the market, where tenants are traditionally not as price-sensitive. The median rent for apartments in Manhattan doorman buildings was down 4% annually to $4,800 per month – compared to a 2% rise over the same period to $4,270 across all building types. This marks the first pricing decline for doorman product in over two years. In addition, vacancy in the borough ticked up – to reach 2.56%, the highest October rate since 2020.
Throughout New York City, apartment seekers are benefitting from a rise in inventory. The number of available listings has reached a two year high in Manhattan and a three year high in Brooklyn, and high costs do seem to be playing a contributing factor in demand. In Manhattan, average rent declined annually for all unit types except studios, while in Brooklyn, studios experienced their 28th consecutive month of annual average rent growth – the longest streak of any apartment category. Current rents have pushed tenants towards smaller units out of necessity, thus driving studio pricing upward.”
– Gary Malin, Chief Operating Officer, The Corcoran Group
MANHATTAN
Rents
- The median Manhattan rent was $4,270 per month in October 2023. Rental prices have fallen 5% when compared to September but rose 2% versus last year. The median rent for apartments in doorman buildings decreased for the first time in over two years.
- Average rents decreased year-over-year for all unit types except studios. High rents have pushed renters to smaller units, driving studio rents upward – to reach an average of $3,332. In contrast, three-bedroom rents experienced their largest annual decline in nearly three years.
- With an average rent of $8,480, SoHo/Tribeca was the most expensive Manhattan neighborhood for renters. Inwood/Washington Heights was the most affordable, where the rent was $2,581 on average.
Listings/Vacancy
- In October 2023, there were 8,932 active listings across Manhattan, up 6% from September and a substantial 42% rise year-over-year. Consistent high rents may be keeping tenants in place and the number of active listings elevated.
- The average Manhattan apartment took 95 days to find a tenant in October, compared to 80 in September – a 19% climb month-over-month and a six-month high. Days-on-market also rose 3% when compared to October 2022.
- The Manhattan vacancy rate was 2.56% in October, up from September when the rate was 2.41%. This reverses the consecutive monthly vacancy declines since June. Visible vacancy rose year-over-year for the 14th consecutive month to reach the highest October reading since 2020.
Leasing Activity
- With 4,606 new leases signed in Manhattan, October 2023 leasing activity fell 2% from September. Reported leases signed also fell 6% annually, the first year-over-year decline since September 2022, which could be a sign this slowdown is more than seasonal.
BROOKLYN
Rents
- The median rent in Brooklyn was $3,750 in October 2023, down 2% month-over-month but up 4% year-over-year. October marked the 25th consecutive month of annual rent growth. However, the 4% year-over-year increase in median rent was the smallest annual increase in three years.
- At $4,328, the average rent for Brooklyn in October declined 3% from September but rose 7% annually. Average rent increased year-over-year for all bedroom types. Studios experienced their 28th consecutive month of annual rent growth, the longest streak of any bedroom type — to reach an average of $3,000 per month.
Listings
- There were 4,024 active listings available in Brooklyn during October 2023, 11% more when compared to September and 19% when compared to last year. The number of available units in the borough has reached a three-year high.
- The average Brooklyn rental spent 77 days on the market in October, a 31% increase versus September, but level with last year.
Leasing Activity
- At 1,128, the number of leases signed in October 2023 rose 2% from September. However, reported signed leases saw their largest annual decrease since September 2022, down 19% year-over-year. High rents continue to impact Brooklyn leasing activity.
