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Residential
New York

Manhattan rents hit highest level in more than a decade

Concessions continued to fall

(Credit: iStock)
(Credit: iStock)

As rental rates across the boroughs increased, Manhattan saw a near record month.

Median rental prices on the island reached $3,600 in November — an 8.5 percent year-over-year increase, according to Douglas Elliman’s latest rental report, authored by appraisal firm Miller Samuel. It’s the highest level recorded in more than a decade, and the second-highest ever recorded.

“Higher end of the market has softened up, and we’re still seeing buyers on the sales side camping in the rentals,” said Hal Gavzie, Elliman’s executive manager of leasing. “But, as it has been over the last several months, there is quite a bit of inventory. Customers are looking at many more properties for rental than they had in the past.”

Inventory in Manhattan jumped 3.6 percent year over year, and 6.5 percent over the month. Median rents for apartments without door men in Manhattan also surged to the highest rate in more than seven years, while median rents for one-bedroom apartments reached a 12-year high.

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Brooklyn’s median rose 3.5 percent to $2,950, and the net effective median rent was also up year-over-year for the twelfth consecutive month. Inventory was up 8.2 percent over the month but down 12.5 percent year over year.

Median rents in Queens were up 4.6 percent from the same period last year to $2,878, and the listing inventory was also down 13.3 percent to 399. Concessions were down again, slumping from 59.2 percent to 54.5 percent.

At the same time, the number of new leases fell. Manhattan saw a 13.5 percent year-over-year drop to 3,096, while Brooklyn leases fell 8.6 percent to 878 and Queens saw a 14.3 percent drop to 233.

Meanwhile, the decrease in concessions continued, making eight months of straight decline.

“Conditions in the NYC real estate market right now are ideal for the rental market to thrive, so this month’s results are no surprise,” Jonathan Miller, president and CEO of Miller Samuel, said in a statement. “We haven’t seen a rental price drop or an increase in concessions in several months, and it’s certainly looking like the market will finish out the year with that same resilience.”

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Douglas EllimanRental Market