Manhattan and Brooklyn rents hit ‘unusual’ all-time highs in February
- Rents typically peak in July or August and records were last set in summer 2023
- Manhattan median rent increased for the fifth time, rising 6.4 percent to $4,500
- Average rent per square foot in Brooklyn set a record for the second month in a row
“If we’re setting records in February, we could see further records this summer if economic factors don’t change,” said Jonathan Miller of Miller Samuel.
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Bidding wars for New York City rentals hit new records in February, typically a slower month for the rental market, and that competition helped drive median rent in Manhattan and average rent per square foot in Brooklyn to new highs.
Manhattan median rent for new leases increased year over year for the fifth time, rising 6.4 percent to $4,500, according to the latest edition of the Elliman Report for the Manhattan, Brooklyn, and Queens rental markets.
The rental market is still absorbing buyers who are putting off purchasing while they wait for mortgage rates to come down to more comfortable levels. This added competition contributed to last month’s increase in bidding wars for Manhattan rentals, which hit a new high of 26.8 percent market share, or more than one in four new leases.
NYC rents have been rising since the fall, noted Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report. “But to have hit a record in February is unusual,” he said. Rents typically peak in July or August and records were last set in the summer of 2023.
“If we’re setting records in February, we could see further records this summer if economic factors don’t change,” he added.
Dancing around the ‘R’ word
Of course a major economic factor would be a recession and some economists see an increasing risk of that happening as result of President Trump’s tariffs, which could hurt the economy.
“If the saber rattling on tariffs continues, I think we can expect if not a recession, then lower mortgage rates, brought to us by a lot of job losses,” Miller said. This would lead to further contractions because “when consumers are uncertain, they pause,” Miller added.
Manhattan new leases trending
It was the 11th consecutive month with an increase in new lease signings in Manhattan, and the fourth month to see the vacancy rate tighten. The vacancy rate inched down to 2.40 percent last month from 2.49 percent in February 2024.
For Manhattan luxury rentals, considered the top 10 percent of the market, annual median rent was higher for the third time, increasing 8.4 percent to $10,600.
Bidding wars climb in Brooklyn
In Brooklyn, average rent per square foot and bidding wars both hit new highs, as per the Elliman Report. Average rent per square foot jumped 7 percent to $59.15, the second month in a row this metric set a new record. Median rent for new Brooklyn leases also rose; it climbed 2.9 percent to $3,600.
Bidding wars in Brooklyn reached 35.1 percent of all new leases, or more than one in three, a new record.
New lease signings and listings continued to rise year over year, the report said, up 17.5 percent and 23.8 percent respectively.
All signs point to higher rents in Queens
For the northwest section of Queens covered by the Elliman Report, all rent metrics continue to rise annually. For example, median rent rose year over year for the fourth time in five months, increasing 7 percent to $3,466.
New lease signings and listings are also rising annually in the borough.
Opting to renew instead of move
The Corcoran Group also released Manhattan and Brooklyn rental reports for February 2025.
Gary Malin, COO of Corcoran, noted that “high [rents] and a competitive market continue to prompt many tenants to renew their current leases and simply stay where they are.”
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