Luxury rentals in New York see a rush of new lease signatures and price increases may not be far behind

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New York City rental markets posted a strong performance in June, in part thanks to a surge of luxury activity, an indication that as Covid-19 infection rates continue to decline , the city’s wealthy residents are returning in droves.

While prices were largely flat – Manhattan’s luxury rental market saw median prices drop 2.9% year on year, according to Douglas Elliman’s June rental report released Thursday – there is had an explosion in rental activity, with an overall increase of 204.1% in new leases over one year. year. In Brooklyn, median prices fell in all categories other than three-bedroom apartments, but the number of new leases doubled between June 2020 and June 2021.

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“The strength of the Manhattan luxury rental market has transformed during the pandemic era into one of the strongest segments,” Jonathan Miller, president and CEO of Miller Samuel and author of the Elliman report. “High rental volume combined with a sharp drop in luxury goods inventories suggests potential upward pressure on prices in the near future. “

A June rental report from Corcoran also showed a 184% year-over-year increase in leases signed for the month, as well as an 84% annual increase in listings, indicating an increase in pent-up demand. of two tenants looking for apartments. , and owners are waiting for the right time to rent them, even as prices stagnate.

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Brooklyn has seen a similar rush of rental activity, with a 125% year-over-year increase, according to Corcoran, and a 109% increase in new listings. Median rental prices in the borough also fell 13% from the previous year, and almost all neighborhoods saw price declines except DUMBO, where average rents increased by 5%. %, to reach $ 4,711.

Brooklyn rental market activity soared in June [but] price negotiability in the borough remains, ”Corcoran COO Gary Malin said in the report. “Apartment seekers are taking advantage of this limited window of opportunity to get a good deal, but the current conditions are also benefiting property owners. Their first priority is simply to find residents for the excess inventory released during the pandemic, and they are attracting new tenants in droves. Rest assured, the rents will not be outdone.

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