New York Rents Continue to Soar to Historic Numbers

Manhattan rents hit another all-time high in July, marking the third time in four months that rents have risen to a record price, according to a report from Douglas Elliman on Thursday. 

The median rental price in July rose 6% year over year to $4,400, which was $100 more than June’s median rent. 

Across Manhattan, rents in downtown neighborhoods were the highest, with a median price of $4,950, a 7.6% increase from last year, according to the report. 

“With many leases timed to expire during summer and the last of the ‘Covid deals’ coming to an end, this season has been exceptionally active for the New York City rental market, even when compared to the intense conditions found last year,” said Gary Malin, COO of the Corcoran Group, which also released a rental report Thursday. 

However, despite approaching the summer peak, new leases took a dive both annually and monthly, dropping 6% since last July and 3.2% since June, according to the Douglas Elliman report.

In the luxury sector—the top 10% of Manhattan’s rental market—median rent was the second-highest on record in July, increasing 17.1% from last year to $12,495. Like the overall market, new luxury leases were also down, slipping 5.6% annually and 2.7% from June, according to Douglas Elliman.

“Despite the price sensitivity felt by many New Yorkers, there is a segment of tenants—some who have chosen to delay their home purchase—that are willing to pay for premium product,” Malin said. 

Across the river in Brooklyn, median rent set a record for the fourth consecutive month, increasing 16.2% annually to $3,950, Douglas Elliman reported. Luxury median rent was exactly double that at $7,900, 9.7% higher than it was a year ago.

Filed under: Headlines by Wendy Jackson
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