A low vacancy rate combined with a rapid drop in listing inventory led to record prices in Manhattan. Net effective median rent increased annually at its highest rate to the second-highest January ever recorded. Listing inventory fell year over year at a record rate for the sixth straight month, and the vacancy rate fell below pre-pandemic levels for the second consecutive month. Doorman median rent surged year over year for the sixth straight month at a record rate, and non-doorman rent jumped annually at a record rate but remained below pre-pandemic levels. Luxury average rent rose to the highest level in more than eleven years, and luxury listing inventory fell to the lowest in six and a half years of tracking. The luxury landlord market share of concessions dropped by half before the pandemic began.
Against the backdrop of a sharp decline in listing inventory, heavy leasing volume in Brooklyn led to rapid rental price gains. As a result, listing inventory fell year over year by the highest rate on record. New lease signings rose to the second-highest January since tracking began in 2008. It follows that net effective median rent rose year over year at the third-highest rate for the month of December.
In Northwest Queens, record January leasing volume and a rapid decline in listing inventory resulted in a surge in rental price gains. Subsequently, the net effective median rent rose at its second-fastest annual rate on record. In addition, listing inventory fell year over year by the largest rate on record. Consequently, the number of new leases reached its highest level for January on record.