Manhattan Apartment Rents Sitting on Expensive Plateau
Median rent ticks up to $4,050 in December, first increase since August peak.
After retreating from last year’s torrid rent growth, which set a record of $4,400 per month in the median price in August, apartment rents in Manhattan appear to be leveling off.
The median rent in Manhattan increased for the first time since August in December, rising to $4,050, 1.3% higher than November’s level of $4,000 and almost identical to the median rent in December 2022, according to a new Elliman Report.
The number of new leases in Manhattan, which dropped by 29% in November to 3,368 from October’s tally of 4,717, bounced back in December to 3,632, a 7.8% rebound.
The December increases in median rent and lease deals are interpreted as a strong signal that demand remained robust in a season when rents usually decline.
However, the vacancy rate increased in Manhattan to 3.42% in December, the highest level since July 2021. Vacancies rose from November’s level of 2.93%, with the Downtown submarket’s rate hitting 4.61%.
The listing inventory dipped by 9.5% in December in Manhattan, dropping to 7,621 from 8,422 in November. The market share of rents with concessions increased to 16.9% in December, a 2.9% increase over the November level.
The median rental price in Brooklyn also appeared to level off in December, ticking down to $3,469 from $3,495 in November. Median rent peaked in Brooklyn in July at a record $3,950
The number of new leases in December in Brooklyn, 2,272, rose 1.4% of November’s tally of 2,240, which is double the number of new leases in December 2022. “Lower rents since the recent summer highs likely explain the rise in lease signings over the past two months [in Brooklyn],” the report said.
The market share of rentals with concessions in Brooklyn increased to 22.2% in December, up from 21.8% in November. Listing inventory dropped by more than 18% in December, to 3,400 from November’s tally of 4,160.
The market share for bidding wars, a proxy for new leases signed above the landlord’s asking price was 22.2% in Brooklyn, with an average premium of 15.2%.
The median rental price for apartments in Northwest Queens jumped 9.8% in December to $3,485 from $3,175. The number of new leases in Queens increased to 525 from 416 the previous month. Median rent in Queens peaked in August at a record $3,900.