New York City Apartment Rental Prices

febrero 08, 2024

New York City Rental Prices

New York City, NY is recovering from the Covid pandemic only to meet with new challenges for its rental market.

Vacancy rates in each of its 3 main Burroughs are extremely low while rent prices are recovering. As this graphic courtesy of Zillow shows, rent prices in metro New York City are up year over year. This year’s price trajectory looks like it’s headed for the record heights of last summer. Zillow reports that February rent prices are already up $50, only 12 days into February.

New York Rental Market January 2024. Screenshot courtesy of Zillow.

This price trend suggests that inflation will be rising this spring and summer as rent is a significant part of consumer cost of living calculations. It was believed that given 2023 saw the largest growth in multifamily unit releases that prices should perhaps decline. The data seems to indicate a continuing rise.

NYC is one city affected by the return to office mandate of many large corporations. The net result is big increases in demand and new lease signings.

Prices Rise and Vacancies Drop in NYC

According to several rental market reports, prices are rising slightly driven by demand for 3 bedroom rentals.

This chart from Douglas Elliman’s January 2024 rental market report on Manhattan shows are inching back up far ahead of expectations. Price per square foot is at an all-time high, and new lease signings are brisk while listings have jumped 18% year over year. Downtown rental prices rose 1.9% vs December while vacancies rose 4.17% vs December.

Manhattan Rental Prices vs Lease Volumes. Screenshot courtesy of Douglas Elliman.

While demand is strong for studios and 1-bedroom apartments, 2 and 3-bedroom units have seen average price declines of -2.3% and -5.3% respectively year over year. 2 bedrooms however, rose 2.5% in price.

Manhattan, Brooklyn and Queens apartment leases with concessions rose 16% vs December and are up 16.5% year over year.

Manhattan Rent Prices. Screenshot courtesy of Douglas Elliman.

NYC Residential Rental Market Report: Corcoran

Another report, entitled the NYC Residential Rental Market Report: Jan. 2024 from the CORCORAN group shows the NYC housing market is in a rebound.

“The Manhattan rental market experienced a rebound as we entered 2024. The number of signed leases in the borough climbed a substantial 38% when compared with December and 4% year-over-year, largely driven by demand for luxury units said

They report that the median Manhattan rent fell 3% to $4,300 per month in January 2024, vs. $4,428 per month in December, however it is up 2% year over year. 3 bedroom rentals average rent priced 15% year-over-year to reach $10,424 per month.

With 3,929 new leases signed in Manhattan, January 2024 leasing activity climbed 38% when compared to December and 4% year-over-year. This marks the largest monthly increase in fifteen months.

In Brooklyn, signed leases rose 37% in January compared to the previous month as did rent prices, reaching a new all-time high median price of $3,950. Brooklyn apartment vacancies were filled faster, as days-on-market decreased 15% month-over-month and 37% annually — to 44 days.

The median rent in Brooklyn rose 6% in January to $3,950 up 6% month-over-month and 7% year-over-year.

Will Rent Prices Drop, or Seek New Highs in 2024?

While considerable new construction occurred in 2023 in the multifamily segment, it appears it is easily absorbable. With higher for longer interest rates likely the course, new construction could see a decline. With a burgeoning growth of Gen Z renters, illegal migrants and an improving economy, we might forecast growing rents and lower vacancy rates.

While we’ve seen a lull in apartment rental prices nationally and in New York, the summer market appears to be tightening and fewer landlords are offering up concessions to attract renters.

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