NYC rents surged in January, a likely sign of record highs to come
- Manhattan median rent rose to the third highest on record, rising 7.9 percent to $4,695
- Brooklyn median rent increased 9 percent to $3,814 according to the Elliman Report
“Summer rents typically climb a few hundred dollars from winter levels, so if this trend holds, we could see new record highs again,” said Rachel Fiegler of Pinpointe Group.
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Rents for new leases surged and listings declined last month, indications that New York City apartment hunters can likely expect record highs this spring.
All the ways you can measure rents ticked up in January (median, average, and per square foot) according to the latest Elliman Report for Manhattan, Brooklyn, and Queens rental markets. The number of new lease signings was nearly flat or declined from last year, and listings continued to drop, according to the report.
In Manhattan, median rent rose to the third highest on record, increasing 7.9 percent to $4,695 compared to January 2025. Listings were down year over year for the seventh time, a drop of 9.3 percent, while the number of new leases was up a mere 0.5 percent.
The Manhattan vacancy rate was 2.44 percent, well below the 10-year average for January, according to Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the Elliman Report. (After 32 years of producing real estate market reports for Douglas Elliman, the data whisperer announced yesterday that he was stepping back to focus on other ventures.)
Many buyers still opt to rent
In a continuing trend, many would-be buyers are opting to rent while they wait for mortgage rates to drop further, increasing competition for apartments and enabling landlords to command high rents.
“With the decline in mortgage rates seemingly on hold, there is little expected relief” for renters signing new leases this spring, Miller said.
A new national poll found that most buyers won’t purchase unless rates dip below 6 percent. According to National Mortgage Professional, the yield on the 10-year Treasury bond would likely need to fall below 4 percent before mortgage interest rates drop under 6 percent. The yield is currently between 4.1 and 4.3 percent.
Higher base rents for spring
The Manhattan rental market did not behave as brokers expected, instead median rent showed a large annual increase for the 16th time.
“Manhattan pricing has continued to climb steadily, and inventory feels noticeably tighter. Even in what’s typically a slower leasing month, we didn’t see the kind of dip in rents we’d normally expect,” said Rachel Fiegler, co-founder and CEO of boutique real estate firm Pinpointe Group.
What happened in January will have an impact on the spring market by “setting a higher baseline for rents,” she said.
“Even if more units come to market in the spring, demand will outpace supply. Summer rents typically climb a few hundred dollars from winter levels, so if this trend holds, we could see new record highs again,” she said.
Aligning lease renewals
There’s another factor leading to fewer listings in winter, Fiegler explained.
“Many landlords have spent the past several years shifting lease expirations out of winter and into spring and summer. We’re still seeing owners offer 14- to 18-month terms instead of 12 months to align renewals with peak season. That reduces meaningful winter inventory and puts even more pressure on the busy months,” she said.
Brooklyn median rent up by 9 percent
In Brooklyn, all rent metrics “continued to experience robust year over year growth,” Miller wrote.
Brooklyn median rent increased 9 percent to $3,814 last month compared to the previous year. Lease signings dropped by 24.8 percent and listings were down 15.5 percent.
More than three out of 10 leases involved units that rented above the asking rent, according to the Elliman Report.
Queens listings fell 16.8 percent
In the northwest Queens region covered by the Elliman Report, all rent measures increased annually, including median rent, which climbed 10.4 percent to $3,754 last month compared to the previous year.
Listings fell 16.8 percent and new lease signing were down a negligible 0.3 percent. More than one out of four apartments were rented above the asking price.
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