Manhattan rents failed to break another record this August

Renters in New York City finally have a chance to catch their breath. Last month, the median rent in Manhattan did not set another record, putting an end to the six-month streak of rising prices.

In August, the median price for an apartment in Manhattan slipped 1.2 percent to $4,100, according to the monthly report from Miller Samuel. Manhattan rents have been rising at a fast pace since February, reaching a new all-time high each month. This slight change in rental prices shows that the rental market has plateaued. 

In Manhattan, nearly 6,000 new leases were signed last month, up almost 10 percent from July. The listing inventory is slowly increasing, and so does the vacancy rate. However, most landlords are not yet willing to make price adjustments or offer generous perks, such as free months of rent. Only 11 percent of new leases had any concessions, down 37 percent from August 2021. 

The fast-paced growth of rents in Manhattan pushed many New Yorkers to look for an apartment in the outer boroughs. The median price for a rental in Brooklyn continues to trend upwards, climbing to $3,500 this August, according to the report. The rental inventory in this borough went up more than 10 percent and reached 4,010 available listings. More than 2,000 new leases were signed last month, up nearly 20 percent from July. 

Similar to Manhattan, rental prices in Queen have also decreased. The median asking rent in this area fell 2.6 percent to $3,065. Fewer landlords in Queens are offering any concessions, and the number of new leases rose almost 13 percent to 432. The listing inventory in this borough increased slightly, 3.6 percent from last month. 

After the Federal Reserve began to raise mortgage rates, some New Yorkers decided to postpone their plans to buy a home and returned to the rental market. The demand for rentals skyrocketed, causing a significant increase in prices. Jonathan Miller, the author of monthly reports, says that the rental market will continue to stabilize, but prices will not drop significantly any time soon. 

Resources:

“Elliman Report: Manhattan, Brooklyn & Queens Rentals 8-2022,” (Miller Samuel Inc., 2022)

“Manhattan Apartment Rents Plateau After Months of Record Highs,” by Jennifer Epstein (Bloomberg, 2022)

“Rents have stopped growing – but are unlikely to fall,” by Suzannah Cavanaugh (The Real Deal, 2022)