3 painful facts for Manhattan renters — and happy ones for landlords

Rising rents, falling concessions and scant inventory are triple whammy

New York /
Apr.April 21, 2022 08:00 AM
Manhattan rents up $1,000 ahead of spring rental season in NYCwith Zillow's Joshua Clark (Zillow, iStock)

Manhattan rents up $1,000 ahead of spring rental season in NYCwith Zillow’s Joshua Clark (Zillow, iStock)

Apartment hunting in New York? Brace for an insufferable spring.

In the first quarter of 2022, the median Manhattan rent soared nearly $1,000 above last year’s level to a new high of $3,695, according to a StreetEasy report.

In part, those jumps reflect the bottomed-out market at the beginning of 2021 when monthly rents fell to a decade-long low and an unprecedented 42 percent of Manhattan units included at least one month of free rent.

Today, landlords are conceding little: Two-thirds of those concessions have disappeared. Just 13 percent of the Manhattan apartments are offering a break, the lowest share in six years, according to StreetEasy data.

Meanwhile, renters who returned to the city in droves following vaccine rollouts have gobbled up the available inventory. Fewer than half as many units were listed on StreetEasy from January through March than over the same period last year.

In Brooklyn, the rental market is almost as bleak for tenants and bonkers for landlords. The median asking rent reached a new high at $2,800, available inventory had fallen by nearly half from a year earlier and the borough had the lowest share of units offering discounts, 12 percent.

But rental experts see the New York rental market finding an equilibrium.

Pricing pressure will likely push some tenants who secured pandemic deals out of New York. Those vacated apartments will bolster listing inventories, said Joshua Clark, a senior economist at Zillow. If enough units come online, rent growth would stabilize.





    Related Articles

    arrow_forward_ios
    SL Green's Harrison Sitomer and 450 Park Avenue (SL Green, Taconic Partners)
    SL Green closes on Park Avenue office tower
    SL Green closes on Park Avenue office tower
    240 Sullivan Street and Sky Management’s Jonathan Ohebshalom (Sky Management, Google Maps, iStock)
    Sky buys Greenwich Village mixed-use building in quiet week for i-sales
    Sky buys Greenwich Village mixed-use building in quiet week for i-sales
    Marble Collegiate Church, HFZ's Ziel Feldman and Vanbarton’s Gary Tischler (Getty, iStock)
    Church seeks to escape hellish partnership with HFZ
    Church seeks to escape hellish partnership with HFZ
    CoStar's Andy Florance and REBNY’s James Whelan (Getty, iStock)
    REBNY, CoStar launch Citysnap listing portal
    REBNY, CoStar launch Citysnap listing portal
    From left: 121 West 26th Street, Watermark’s Brendan Medzigian and Two Kings Principal Christopher Wang (Google Maps, Watermark , LinkedIn)
    Watermark Capital sells Holiday Inn in Chelsea for $80 million
    Watermark Capital sells Holiday Inn in Chelsea for $80 million
    Jim Chanos, president and founder of Chanos & Company LP (Getty Images, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
    Jim Chanos’ next Big Short: data centers
    Jim Chanos’ next Big Short: data centers
    From left: Lawrence Friedland and Stanley Zabar in front of 2231 Broadway (Getty Images, Friedland Properties, iStock)
    Friedland sues Zabar family in UWS dispute
    Friedland sues Zabar family in UWS dispute
    Allure’s Joel Landau and 9036 7th Avenue in Brooklyn (Allure, Google Maps)
    Abe Leser’s ailing hospital deal revived for $160M
    Abe Leser’s ailing hospital deal revived for $160M
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...