Manhattan median rent spiked 6 percent to $4,500 in April
- Queens median rent rose 9.4 percent to $3,550—just $50 less than Brooklyn as per the Elliman Report
Analytics firm UrbanDigs found that high-end buyers who would typically be in the market for properties from $4.5 to $6 million are opting to rent instead, signing leases for $20,000 to $25,000 per month.
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Renters signing new leases in Manhattan last month likely experienced sticker shock from sharply higher rents. Median rent for the borough was up nearly 6 percent compared to a year ago, and at least a quarter of renters were willing to pay more than landlords were asking to land their apartments.
The New York City rental market continues to see increased competition for apartments from would be-buyers who got cold feet about mortgage rates, the economy, and the impact of President Donald Trump’s new tariffs—and that competition is fueling higher rents.
Manhattan median rent rose 5.9 percent to $4,500 last month compared to $4,250 in April 2024, representing a new record for the second time in three months, according to the latest edition of the Elliman Report for the Manhattan, Brooklyn, and Queens rental markets.
“New York City is seeing more growth in rents than the rest of the country,” said Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report. He attributed this to mortgage rates stuck at high levels and the inflationary impact of tariffs, which is leading more New Yorkers to put off buying and rent instead, a trend that NYC has seen since the Federal Reserve began raising interest rates.
Interest rates were predicted to drop this year and buyers were expected to make their move back into the sales market. “But it became clear in the beginning of the year that this was an unreasonable expectation,” Miller said. The economy was rattled by President Trump’s tariff announcements and in February, Manhattan rents hit an “unusual” all-time high.
“Normally we don’t see all-time highs in the winter. It makes me think we’re going to see more records,” Miller said.
Despite Manhattan’s high rents, leasing activity was elevated. New lease signings rose annually for the 13th time, increasing 4 percent over April 2024. “We continue to be surprised by leasing activity at higher rents,” Miller said.
Bidding wars were involved in roughly one in four new leases last month, a ratio reflected across all apartment sizes and all price segments of the rental market, he said.
Also surprising is how much more renters are willing to pay on top of what landlords are asking: The average additional amount is 11.8 percent, Miller said. Over the last year, that premium has ranged from 8 to 12 percent, he added.
Paying more per square foot in Brooklyn
Rents per square foot in Brooklyn rose to the second-highest level on record, increasing 6.6 percent to $59.44, according to the Elliman Report. Lease signings were up 7.8 percent and listings increased a whopping 46.3 percent over a year ago.
Median rent, however, was unchanged from a year ago at approximately $3,600.
Queens nearly catches up to Brooklyn
In Queens, all rent metrics showed sharp increases last month, as per the Elliman Report. Median rent increased year over year for the fourth time, rising 9.4 percent to $3,550—just $50 less than Brooklyn.
New lease signings and listings climbed above year-ago levels.
More opportunities in Brooklyn
The Corcoran Group also released its Manhattan and Brooklyn rental reports for April.
Gary Malin, COO of Corcoran, commented on the advantage held by Brooklyn apartment hunters.
“While conditions in both boroughs remain frustrating for would-be tenants, the data shows that conditions seem to be slightly less challenging for those looking in Brooklyn, most notably in regard to inventory,” Malin said.
“My consistent advice to renters is to keep an open mind when seeking a new home. There are opportunities around every corner in New York, and those who are willing to be flexible and realistic about their ‘wants’ versus ‘needs’ are often rewarded,” he said.
Luxury buyers pause in rentals
Luxury buyers are increasingly becoming luxury renters instead, at least temporarily. That’s supported by a new report from real estate analytics firm UrbanDigs, which found that high-end buyers who would typically be in the market for properties from $4.5 to $6 million are opting to rent instead, signing leases for $20,000 to $25,000 per month.
From January through April, 300 ultra-luxury NYC units were rented, an increase of 30 percent over last year. These buyers are “pointing to stock market swings, questions around future property values, and wider economic pressures like tariffs,” said Bill Kowalczuk, a broker at Coldwell Banker Warburg.
Becki Danchik, a broker at Coldwell Banker Warburg, said that a high-end client she was working with “ultimately stopped looking to buy due to economic factors.” The client thought “it would be a better financial decision to save money right now and rent.”
