For the second month in a row, NYC median rents rise
- Manhattan median rent jumped 5 percent to $4,200 according to the Elliman Report
- Bidding wars were involved in 29.4 percent of new leases in Brooklyn last month
- Queens median rent increased 8.9 percent to $3,458, almost as pricey as Brooklyn
Is this the start of a new trend? NYC has seen two months of increasing median rents after a long stretch of flat or slipping rents.
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November is typically a slow month for rental activity, so it was surprising to see a jump in median rent and a surge in new leases.
For the second month in a row, Manhattan median rent increased annually according to the Elliman Report for the Manhattan, Brooklyn, and Queens rental markets, jumping 5 percent to $4,200 compared to November 2023. Leasing was up 37.7 percent over the prior year.
If you’re in the market for a new rental, you may have been surprised to find you had competition last month. Bidding wars were involved in 16.8 percent of new leases in Manhattan, compared to 14 percent a year ago, as per the Elliman Report.
Some of that competition is coming from would-be buyers who are shut out of the purchase market by stubborn mortgage rates and are seeking rentals.
"For the second month in a row we're seeing rents pop, and that's stemming from mortgage rates, which are staying put. There have been some dips, but they're nominal," said Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report. "The expectation is that inflation will continue to be an issue next year, which will keep mortgage rates elevated."
As a result, Miller said he's anticipating that rents will continue to edge higher.
Manhattan listings were up 4.2 percent year over year, the 15th month with an increase.
What’s going on with luxury rentals?
The median price for Manhattan luxury rentals dropped 10.6 percent to $9,750 compared to November 2023.
The opening pricepoint for luxury rentals fell to its lowest level since spring, dropping 3.7 percent to $7,900 over November 2023.
More bidding wars in Brooklyn
Median rent also increased in Brooklyn for the second month in a row, but at a lower rate, ticking up just .1 percent to $3,500 compared to November 2023.
New lease signings have been rising substantially for 14 months, the report said. They were up 40.4 percent last month over the prior year.
Bidding wars heated up too, representing 29.4 percent of deals, up from 20.2 percent a year ago.
Queens median rent catching up to Brooklyn
In the northwest region of Queens covered by this report, median rent was also up for the second time annually, an increase of 8.9 percent to $3,458.
New lease signings have been rising substantially for 14 months, the report said, climbing 65 percent over the prior year. Listings rose annually for 10th time.
Looking ahead
The Corcoran Group also released its Manhattan and Brooklyn rental reports for November and Gary Malin, chief operating officer of The Corcoran Group, noted that winter can be a good time to negotiate a deal on rent.
Because the end of year is when leasing slows down, he said, “Owners seem to be more flexible with pricing. If a renter is willing to take on the task of moving in addition to all of their holiday commitments, they may find relative value in today’s marketplace.”
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