For rentals in New York, the rental frenzy has died down but prices continue to rise

Rents in New York continue to rise as vacancy rates plummet in the city’s continued resurgence from the depths of the Covid-19 pandemic.

In Manhattan, the median rental price for November reached $3,450, a 16.7% year-over-year increase, according to a November rentals report released Thursday by Douglas Elliman. A November rental report from Corcoran, also released Thursday, showed median Manhattan rents at $3,400 and up 13% year over year.

In Manhattan, SoHo/Tribeca and Chelsea/Flatiron saw the largest year-over-year average rental price increases of any neighborhood, at 63% and 51%, respectively, according to Corcoran data. In Brooklyn, South Williamsburg and Downtown Brooklyn saw the highest average annual rent increases at 28% and 26%, respectively. (The report did not include median changes for specific neighborhoods.)

According to Corcoran, vacancy rates in Manhattan have fallen to 1.6%, a year-over-year decline of 3.29% and a rate that is approaching the low levels of available inventory in the city.

Douglas Elliman

“What’s remarkable is how quickly all of the excess apartment inventory has been absorbed,” Corcoran COO Gary Malin told Mansion Global via email. “Last November, there were over 30,000 active listings in Manhattan. In November, that number was just above 4,500.”

Mr Malin added: ‘Today, demand remains robust, but supply is insufficient, particularly in prime neighbourhoods.’

As with the economy as a whole, however, the recovery of the New York rental market has been uneven and remains focused on the high end of the market. Compared to Manhattan’s spectacular growth, Brooklyn’s median rents rose just 0.5% year-over-year, to $2,800, according to Elliman’s figures, while Median rents in Northwest Queens have increased 4% per year, up to $2,600. However, the two boroughs still recorded the highest number of new lease signings in November in more than a decade.

In Manhattan, median prices for rentals in the top 10% of the market rose 22.5% year over year, according to the Elliman report, while mid-tier prices rose 15.9% and admission prices have increased by 10%.

“The massive increase in new rental activity last spring is returning to more normal seasonal levels and overall price trends are rapidly approaching or have reached pre-pandemic levels,” Elliman report author Jonathan Miller said. President and CEO of appraisal firm Miller Samuel. says Mansion Global.

“What has changed, however, is the significant difference between the upper and lower half of the rental market in terms of price,” Miller added. “Rental price trends for the top half of the market are already ahead of pre-pandemic levels and the bottom half remains behind. The distortion started during the lockdown as low-wage earners suffered more damage economical than the rest of the market.

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