New York City apartment rents have fallen below $3,000 for the first time since 2011. A new report from StreetEasy shows that median asking rent for apartments is $2,990 in the third quarter. Record high rent cuts during the pandemic have led to this decrease. On StreetEasy, 44.7% of apartment listings were discounted, a record for the website.

Manhattan was not the only market segment to see a decline in rents. During the third quarter, the Manhattan Rent Index fell 7.8% year-over-year, bringing the median asking rent in Q3 to $2,990; the Brooklyn Rent Index fell 2.5% year over year, bringing the median asking rent in Q3 to $2,599; and the Queens Rent Index fell 2.2% year-over-year, bringing the median asking rent in Q3 to $2,200.

As rents decreased for existing properties, the apartment supply in New York City also increased, putting more downward pressure on rents. The Manhattan rental inventory increased nearly 70% or 72,267 units. That is 30,000 more units than last year. Renters are no longer willing to pay a premium to live in the city because they do not have to travel to the office, and landlords have had to face the new reality and lower rents to fill units.