The residential rental market in New York City continues to break records. The month of May marked the third consecutive month of record-setting highs in median rents in Manhattan, with figures hovering just below an astonishing $4400 per month despite an increase in inventory of over 20% from a year ago.
Building upon the momentum of last year's rental market, 2023 seems to be following in the footsteps of the 2022 market which had a streak of seven consecutive months of record-setting highs. With a vacancy rate in Manhattan of just over 2% the lack of inventory suggests prices are not likely to soften anytime soon.
Meanwhile, as demand surged and the availability of concessions dwindled, landlords found themselves in a more favorable position. Less than 12% of new leases offered concessions, a significant decline from the peak of over 60% in 2020. The shift in market dynamics has empowered landlords to maintain their asking prices in most cases, while tenants are left with less room for negotiation.
While Manhattan took the spotlight in setting rental market records, its neighboring boroughs were not far behind. Brooklyn also experienced a surge in median rent, reaching a new all-time high last month while Queens recorded its second-highest median rent on record. It's become evident that New York City's residential rents are outpacing those of nearly every other major city, solidifying New York City's status as a leader in the residential market.
