NYC renters were 'on the move' in May as lease signings hit near-record levels
- Double-digit increases in listing inventory for Manhattan, Brooklyn, and Queens helped fuel moves
- Manhattan median rent dipped 3.3 percent while median rents jumped in Brooklyn and Queens
Leasing activity surged across the boroughs largely because listing inventory increased, said Jonathan Miller of Miller Samuel.
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New York City renters signed new leases at a frenetic pace in May, even as median rents remain close to record highs.
With all that activity, you could think of the spring rental market like a high-stakes game of musical chairs, only this year the contest was a little different: There were more chairs.
In Manhattan, listings and new lease signings rose to their respective second-highest levels for May on record according to the latest version of the Elliman Report. New leases were up 40.5 percent and listings increased 27.6 percent year over year. There were similar surges in Brooklyn and Queens.
More options = more moves
Leasing activity surged across the boroughs largely because listing inventory increased, said Jonathan Miller, president of appraisal firm Miller Samuel and author of the report. “Inventory growth is up pretty significantly, fostering more leasing activity.”
And while Manhattan, Brooklyn, and Queens saw double-digit increases in inventory, it’s important to note that the comparisons are with last year’s low inventory, so the surge in listings is significant but not shocking.
Also slightly unusual: Manhattan’s median rent dropped 3.3 percent to $4,250 compared to May 2023. It was the only borough of the three covered by the report to see a decline. Even so, Manhattan median rent last month was the second-highest May in history, according to the report.
New leases jump in Brooklyn and Queens
In Brooklyn, lease signings rose to the highest level on record, increasing 160.9 percent. Listings were up 25.2 percent, also the highest level on record.
Median rent increased 1.4 percent to $3,600 compared to May 2023, the highest level for May on record.
Lease signings also climbed to their highest level on record in Queens, jumping 113.4 percent. as per the report. Listing inventory grew to its second-highest level for May on record, increasing 64.5 percent.
Median rent in Queens, $3,400, was down 0.1 percent (essentially flat) last month.
Pressure from would-be buyers
The rental market continues to bear the fallout from high mortgage rates, Miller said.
Renters who would like to buy are stymied by high rates and are renting instead—increasing competition for rental apartments, which in turn enables landlords to achieve high rents.
Another sign of the current rental market is a negative leasing discount, which means the market-wide average rent that renters agreed to pay was higher than the market-wide average for asking rents. This happens when many renters offer to pay more than the landlord is asking and is a sign of how much competition there is for rentals.
In Brooklyn, the listing discount last month was -2.82 percent and in Queens it was -2.6 percent. (Miller said to think of a negative listing discount as the premium the renter is paying) The listing discount was -0.5 percent in Manhattan in May.
Best and final
Bidding wars continue to be another symptom of the highly competitive NYC rental market. They were involved in one in five new leases in Manhattan last month and one in four new leases in Brooklyn.
Miller noted that bidding wars levels have been consistent throughout 2024, in contrast with last year, when they represented 10 to 15 percent of new rentals.
Because bidding wars took a larger slice of the Brooklyn rental market than the Manhattan market they likely contributed to sending median rent higher in Brooklyn and lower in Manhattan.
‘City on the move’
Corcoran also released May rental market reports for Manhattan and Brooklyn and Gary Malin, COO at Corcoran, drew attention to the influx of inventory in both boroughs, both on a month-over-month and year-over-year basis.
“Leases are often set to expire as we reach the summer season and high rents may have caused more renters to seek a new apartment rather than renew,” Malin said.
“However, it is important to note that these available homes are finding new tenants,” he added. “Most notably, the number of leases signed in Brooklyn expanded a substantial 36 percent from April to May.”
Rents, new listings and the number of signed leases “are all at high levels. By any measure, New York’s rental market is extremely active—and the city is on the move,” Malin said.
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