Manhattan median rent rose to $5,000 as inventory plunged 39 percent in July

Key Points:

• Rising mortgage rates since early 2021 have pushed many potential homebuyers in New York City to remain renters, increasing competition and driving up rental prices, especially in Manhattan and Brooklyn.
• Manhattan saw a 6.4% increase in median rent to $5,000 in July, with luxury rents surging 31% to $13,750; however, rental listings dropped sharply by 39.3%, leading to an 18.8% decline in new signed leases year-over-year.
• Brooklyn experienced a 16.9% rise in median rent to $4,500 alongside a 26.7% decrease in listings, causing a 29% fall in new leases, with luxury listings declining by more than half due to a shrinking new development pipeline.
• Manhattan apartments are renting faster, with average days on market decreasing to 33 days and a vacancy rate of just 1.56%, the lowest July level since 2019, while Brooklyn shows more moderate leasing trends with smaller units gaining demand.
• Rent concessions are rare in Manhattan (4.2% of listings) but more common in Brooklyn (nearly 20% with an average of 1.7 months free rent); meanwhile, the Bronx saw a 25% jump in median rent to $3,000, and Good Cause buildings offer minimal concessions.