Manhattan and Brooklyn rents hit new record highs in March
- Net effective median rent in Manhattan was $4,471 for the second month in a row
- In Brooklyn, rent per square foot was $60.01, a record high for the third month
Manhattan median rent was $4,495 in March, just $5 less than the “unusual” record set in February, as per the Elliman Report.
iStock
March was another unusual month for the New York City rental market: Rents hit record highs again, fueled by increased competition for apartments, plus a new wrinkle: concerns about the economic fallout of President Donald Trump’s new tariffs.
In Manhattan, net effective median rent, which factors in concessions like free months, was $4,471 in March. This was the second month in a row that net effective median rent hit an all-time high, according to the latest edition of the Elliman Report for the Manhattan, Brooklyn, and Queens rental markets.
Lease signings for Manhattan continue to rise; in March they were up by nearly double the amount seen five years ago, according to the report.
Manhattan median rent was $4,495 in March, just $5 less than the “unusual” record set in February, typically a slow month for renters.
Tariffs create a new headache
Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report, said the surge in rents this spring can be tied to fears about the economy and a possible recession.
Uncertainty over the impact of President Trump’s tariffs is contributing to new rise in mortgage rates, which in turn puts pressure on the rental market as some would-be buyers delay purchasing and sign leases instead.
“High rates push people into the rental market,” he said. (That's also what happened when the Federal Reserve began raising interest rates.)
One bright spot for renters: More options. Listings were up 23.1 percent year over year in Manhattan, 26.1 percent in Brooklyn, and 66.1 percent in Queens.
But deals probably seem elusive: Rents are rising faster for non-doorman apartments, considered the lower half of the market. Median rent for these units ($3,595) was up 8.9 percent last month, compared to doorman units ($5,200), which rose 5 percent.
Median rent for luxury units, the top 10 percent of the market, jumped 10.5 percent last month to $10,500.
Brooklyn bidding wars rise
In Brooklyn, rent per square foot hit $60.01, a record high for the third, consecutive month, and lease signings increased 9.9 percent, as per the Elliman Report. Median rent was $3,700, an increase of 5.9 percent from March 2024.
The share of new leases that involved a bidding war rose annually to the second-highest on record. (Last month, they reached 35.1 percent, or more than one in three, a new record.)
Wanted: A two-bedroom in Queens
Over in the northwest section of Queens covered by this report, all of the rent metrics rose year over year for the third time, as per Elliman.
For example: median rent was $3,450, up 7.8 percent from a year ago.
Overall lease signings increased 5 percent, thanks to a 29.5 percent surge in lease signings for two-bedroom units, the only size category to see an annual increase, the report said.
Brooklyn renters were ‘disappointed’
The Corcoran Group also released its Manhattan and Brooklyn rental reports for March.
Gary Malin, COO of Corcoran, commented on the challenges Brooklyn apartment hunters face.
“[R]enters looking for significant pricing relief were disappointed as the median rent ticked up...The borough is seeing significant interest as apartment seekers search for relative value and more housing options. In total, conditions in Brooklyn are far from ideal for [renters], but they are less frenzied than what’s occurring across the East River,” Malin said.
You Might Also Like
