Elliman Report: Median Rent in Manhattan Hits an All-Time High

The median rent in Manhattan surged 25.2% annually in May, reaching the $4,000 threshold for the first time as lease signings continue to rise.

According to a monthly report on the rental market in Manhattan, Brooklyn and Queens, prepared for Douglas Elliman by appraisal firm Miller Samuel, “the market pattern of record rents, rising new leasing volumes, and diminishing [landlord] concessions” also pushed average rents to a record $4,975.

View the May 2022 Report

Jonathan Miller, CEO of Miller Samuel, attributed conditions in part to rising mortgage rates. “This tips a portion of would-be home buyers into the rental market, which is already tight,” Miller told The New York Times, adding that the rise in work-from-home arrangements has forced renters to accept the higher prices. “People are living where they really want to live, which can also be a driver for paying more than they’re used to paying.”

In addition to the increases in lease signings, vacancy rates have stayed under 2% for six consecutive months; doorman, non-doorman and luxury rentals have all hit record highs; and the luxury market share of one-year leases rose to a new high, exceeding half of all new leases.

“I’ve been doing this for over 20 years and I’ve never seen inventory and the demand where it is right now,” Douglas Elliman Executive Manager of Leasing Hal Gavzie told The Real Deal. “Rents just keep going and I don’t really see any signs of them slowing in the immediate future.”

The report also notes that net effective median rent in Brooklyn “reached a new high as landlord concession market share fell to a five-year low,” while in Queens, “net effective median rent reached its second-highest level on record” with “landlord concession market share fell to its lowest level since 2016.”

“I’m seeing people who left the city for the pandemic coming back for the first time,” Douglas Elliman agent Keyan Sanai told the New York Times. “And if you throw into the mix the many new hires and recent graduates that are looking for places right now, this is what happens.”

View The Elliman Report: May 2022 Manhattan, Brooklyn & Queens Rentals

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