The Manhattan rental market is hotter than ever. Again.
The median rent for a brokered Manhattan apartment reached $4,700 in July, a 9.3 percent change from a year earlier, according to the newest report from Douglas Elliman and Miller Samuel. It’s a new record for the borough, the fifth in the last six months.
The record prices come amid a mayoral race that has been notably focused on housing affordability. Frontrunners Zohran Mamdani and Andrew Cuomo blast each other not only on their housing plans but also on their personal living situations, no reprieve from high rents is expected to turn voters’ attentions elsewhere.
“Even if rents stop their ascent, there certainly won’t be a quick pivot to affordability,” said Jonathan Miller, author of the report.
The record prices began in February, unusual timing for the city where rents peak in summer. But mortgage rates have put pressure on the sales market, prompting some would-be buyers to wait it out in the rental market, Miller said. Interest rate cuts, which Treasury Secretary Scott Bessent called for this week, could relieve some of that pressure.
But elevated demand is also carrying the market to record highs. At Fetner Properties, which advertises luxury high-rise buildings, leadership estimates they’ve raised rents an average of 5 or 6 percent across the portfolio in the past year while also updating amenity packages.
“The rents are spectacular,” said Hal Fetner, president and CEO. “There’s just not a lot of new supply coming into the market and then there’s an insatiable demand of professionals who are continuing to look for units.”
Manhattan, Brooklyn and Northwest Queens all saw record highs in the share of apartments subject to bidding wars, 29 percent in Manhattan, 36 percent in Brooklyn, and 27 percent in Queens.
In Manhattan, the rise in prices is primarily driven by studios and one-bedrooms, Miller said. The vacancy rate in the borough was 2.45 percent. Apartments were on the market for an average of 28 days, down from 32 last July.
The FARE Act, which went into effect in June, is also likely to be pushing up rents, at least slightly. The law prohibits brokers from charging fees to tenants who didn’t hire them. If landlords pay for brokers themselves, they’re likely to try to recoup that cost through higher prices.
Median rent in Brooklyn rose to the second-highest on record, at $3,850 for a brokered apartment. That was a 7 percent change from last July. Listing inventory fell 7 percent year over year.
In Northwest Queens, which includes Astoria, Long Island City, Sunnyside and Woodside, median rent was $3,750, a nearly 9 percent increase year-over-year.
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