Manhattan Apartment Rents Are Rising Again

After a retreat in the second half of 2023 from record-setting rent growth last summer, apartment rents in Manhattan are climbing again in 2024.

The median apartment rent in Manhattan rose to $4,230 in February, an increase of 1.9% over January’s median of $4,150. The median rent is still lower than last August’s record of $4,400, but it appears to be heading back in that direction.

Rents in Manhattan are nearly 21% higher than pre-pandemic levels, with the average rent per square foot following the same trajectory, rising 6.6% in February to $84.25, which is about 18% higher than pre-pandemic levels, according to a new Elliman Report.

The number of new leases in Manhattan, which in November dropped below 3,400, surged to 4,349 in February, a 10.9% increase over January’s total of 3,922 and the third-highest February total on record, the report said.

The vacancy rate in Manhattan, which dropped to 2.49% in February from 3.22% in January, is at its lowest level since August. The listing inventory surged to 7,966 units in February, a 6.3% increase over January and 33% higher than the February 2023 total of 5,987.

The market share of bidding wars, a proxy for new leases signed above a landlord’s asking price, was 19.2% in Manhattan last month, with an average premium of 11%.

The median rent in Brooklyn plateaued at $3,499 in February, a drop of one dollar from the January median of $3,500, while the number of new leases surged nearly 17% to 2,498 from January’s total of 2,140.

The number of new lease signings in Brooklyn in February were the second highest total on record, up more than 62% compared to the February 2023 total of 1,540 and 217% higher than pre-pandemic levels, the report said.

The market share of bidding wars in Brooklyn hit 25.3% in February, with an average premium of 12.9%.

The median rental price in Northwest Queens increased to $3,239 in February, ticking up from January’s median of $3,200. The number of new leases surged by nearly 19% to 591 last month, up from January’s total of 497. The median rent in Queens is about 12% higher than pre-pandemic levels.

The market share of bidding wars was 17.3% in Queens last month, with an average premium of 16.7%.

Net Lease Spring:

Held April 16-17 in NYC, Net Lease Spring will bring together hundreds of dealmakers from the nation’s top firms. This year’s program will feature 5.5 hours of face-to-face networking and over 5 hours of content focused on micro and macro trends for 2024, being resilient through market volatility, how to serve your corporate tenant clients and much more! Learn more or register here.

Multifamily Spring:

Multifamily Spring is coming to New York City this April 18. This year’s program will bring together the industry’s most influential and knowledgeable real estate executives from the multifamily sector for 5 hours of face-to-face networking and over 5.5 hours of can’t miss sessions. Learn more or register here.