NYC rents soared to new heights in April

New York City is known for having the highest rents in the country, and this trend is unlikely to change anytime soon. Rents in Manhattan and the outer borough have been breaking one record after the other making it nearly impossible for NYC tenants to negotiate a lower price. NYC rents will likely continue to grow for the next three months, as they typically reach their peak at the end of the summer. 

In Manhattan, the median rent rose to $4,241 in April, a new all-time high, according to the latest Elliman Report. New leases signed in Manhattan last month had a median price that was $316 higher than a year ago. In addition, Manhattan rents also broke their previous record set, which was set at $4,175, and surpassed last summer’s high. Landlord concessions dropped to their lowest level since November 2019.

There were 6,518 rental units available in Manhattan last month, up 2.4 percent from March and nearly 40 percent from a year ago. Although listing inventory increased in April, it remains more than 10% below the decade average for this month. Moreover, record-breaking prices pushed more renters to renew their leases rather than look for a new apartment. New lease signings fell by 20.4 percent month-over-month to 3,869. 

“The drop in new leases indicates that there is a sharp increase in lease renewals,” Jonathan Miller, president and CEO of Miller Samuel Inc., told CNN. “It means the tenant consumer has accepted that we’re not going to see any improvement in affordability in the near term. They are signing renewals instead of testing the market trying to find better opportunities.” 

Brooklyn renters also faced the highest rents on record. In April, the median cost of renting an apartment in this borough climbed to $3,500, up 0.2 percent from the previous month and almost 15 percent from 2022. Brooklyn’s listing inventory expanded 33 percent year-over-year to 3,393 available units. Similar to Manhattan, Brooklyn renters are hesitant to leave their current homes, as a result, new lease signings were down 43.8 percent in April. 

Renters in Northwest Queens, which includes Astoria, Jackson Heights, Long Island City, Sunnyside, and Woodside, also had to deal with record-breaking rents. The median rent hit a new all-time high of $3,525 in April. Listing inventory rose slightly from a year ago to 456 available units. New lease signings dropped for the second time in three months. There were 274 new leases signed in Northwest Queens last month, down nearly 45 percent from March.

Resources:

“Elliman Report: Manhattan, Brooklyn & Queens Rentals 4-2023,” (Miller Samuel Inc., 2023)

“NYC’s Record-Breaking Rents Squeeze Tenants Across Boroughs,” by Jennifer Epstein (Bloomberg, 2023)

“April rents smash records in Manhattan, Brooklyn, Queens,” by Suzannah Cavanaugh (The Real Deal, 2023)

“Manhattan rents reach (another) record high,” by Anna Bahney (CNN, 2023)