For the first time in months, NYC median rents are rising again
- Manhattan median rent rose by 2.4 percent to $4,295 in October according to the latest Elliman Report
- It was the first time median rent grew since April; Brooklyn and Queens rents followed a similar pattern
Non-doorman median rent in Manhattan leaped by 6.1 percent to $3,500 last month compared to October 2023—a much bigger jump than usual.
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Median rents for new leases have been slipping or flat in New York City for several months but in October, they went in the other direction.
Manhattan median rent rose by 2.4 percent to $4,295 last month compared to a year ago, according to Elliman Report for the Manhattan, Brooklyn, and Queens rental markets. It was the first time median rent grew annually since April. Brooklyn and Queens median rents followed a similar pattern.
Also in Manhattan, median rents for non-doorman rentals, which represent the lower half of the rental market, increased at a faster rate than doorman rentals, the upper half of rentals. Non-doorman median rent leaped by 6.1 percent to $3,500 compared to October 2023—a much bigger jump than usual—while doorman median rent ticked up by 1.3 percent to $5,050, according to the report.
The uptick in median rents can ultimately be attributed to rising mortgage rates, said Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report.
After several months of flat or declines in median rent, he said, all three boroughs saw increases. This comes despite the Federal Reserve lowering interest rates by 50 basis points, which was expected to lead to lower mortgage rates and draw buyers out of the rental market, in turn relieving some of the pressure on the rents. That chain of events didn’t happen.
Instead "we’ve seen mortgage rates rise almost a full point,” Miller said, and as a result, “consumers are on the fence about buying.” The increase in mortgage rates prompted would-be buyers to sign leases for rentals.
New leases surge in Brooklyn
Median rent for new leases in Brooklyn increased annually for the first time in four months, rising 3.2 percent to $3,600.
Listings were up year over year for the ninth time, while new lease signings have been surging annually for the past 13 months. Lease signings increased a whopping 93 percent in October and listing were up 19.3 percent, the report said.
Listing jump in Queens
In the northwest section of Queens covered by this report, median rent for new leases rose annually for the first time in eight months, rising 4.8 percent to $3,350, as listings increased for the ninth time, a jump of 64 percent.
New lease signings have been rising year over year for the past 13 months and were up by 71.3 percent last month as per the report.
Looking ahead
The Corcoran Group released its Manhattan and Brooklyn rental market reports for October.
“Record-high rents have caused many tenants to renew current leases, rather than take their chances with current market conditions,” said Gary Malin, Chief Operating Officer at The Corcoran Group.
The market could look different in the winter months, which are typically slower. “Landlords may choose to leverage move-in incentives or adjust pricing to spur activity as we enter the holiday season,” Malin said.
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