Manhattan Rental Trends

In April 2023, the median rent in Manhattan rose to $4,250, marking a 3.7% increase from March. This aligns with a notable surge in new leases, which increased by nearly 15% to reach 5,482, according to the recent Elliman Report.

This new median represents a record for the month of April, although it still falls short of the all-time high of $4,400 set last summer.

The report characterized the spike in lease signings as “ferocious,” as they surged nearly 42% year-over-year, which is the second-highest April total ever recorded.

Factors contributing to this increase in lease signings include a 22% growth in listing inventory, amounting to 7,996 available units compared to 6,518 in April 2023.

Bidding wars are also becoming more common, with the market share in Manhattan exceeding 21%, the highest rate in almost two years. On average, new leases are signed 10.8% above the landlord’s asking price.

Brooklyn’s Rental Landscape

In Brooklyn, the median rent saw a 3% increase, reaching $3,599 in April. However, the number of new leases slightly decreased to 3,066, even as inventory rose to 3,944.

Notably, the bidding war market share in Brooklyn reached an unprecedented 28.7%, with an average premium of 14.6% above asking prices.

Queens Rental Developments

Northwest Queens experienced a rise in median rent to $3,244. New lease signings dipped to 678, despite an increase in listing inventory to 754. Bidding wars in this area accounted for 20.8% of new leases.

Wage and Rent Disparity

A recent study underscores a significant disconnect between rent and wage growth in New York City. Rents increased by 8.6% over the last year, while wages grew only 1.2%, marking the largest gap among the 50 largest U.S. metropolitan areas.

This trend diverges from the national narrative, where wages have generally outpaced rents in most major U.S. metros. The analysis incorporated rental data from Zillow and StreetEasy alongside wage information from the Bureau of Labor Statistics.

StreetEasy Senior Economist Kenny Lee commented, “Despite a strong job market in the city, and in some ways because of it, the gap between what a typical renter can afford and the price of rentals on the market is growing.” He noted that while new multifamily buildings are easing competition in certain markets, supply in New York City is lagging behind demand.