Manhattan median rent rose to $4,625 in June for another record-breaking month
- One in three Brooklyn renters signed leases for higher than the last asking rent
- Queens rental listings were up a whopping 34.1 percent as per the Elliman Report
The FARE Act took effect on June 11th and reports indicate that landlords raised rents for new leases to cover broker fees.
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June was another record-breaking month for the New York City rental market, underscoring the pain felt by renters signing new leases.
Manhattan median rent rose to a new high for the fourth time in five months, climbing 7.6 percent last month to $4,625 compared to a year ago, according to the latest edition of the Elliman Report for the Manhattan, Brooklyn, and Queens rental markets.
Renters of one in four Manhattan listings signed leases for higher than the last asking rent, the report found, a result of bidding wars and renters offering to pay more than landlords are advertising to land apartments in a very competitive market.
Rents have been hitting new highs earlier than usual in the season and the FARE Act, NYC’s new broker fee law that shifts responsibility for broker fees from renters to landlords, is playing a big role. The law took effect on June 11th and reports indicate that landlords raised rents for new leases to cover broker fees.
The trend is likely to continue in the summer months.
“We generally see rent records set in July and August, so I would anticipate that we see record rents in both of those months,” said Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report.
Miller also noted that the FARE Act represents a dramatic and sudden change for the NYC rental process and the rental market will likely adapt. While renters may be paying more each month as opposed to a hefty, one-time fee upfront, there could be other benefits as result of the new law. For example, the new law may encourage some landlords to offer attractive lease renewal terms to existing tenants avoid paying broker fees for new renters, but it is too early to see an impact on leasing, Miller said.
Luxury renters get a break
In the second quarter, high rents did not appear to be a deterrent to Manhattan leasing activity. Lease signings in the borough were up for the 19th time in 20 months, increasing 7.8 percent over June 2024.
The only renters catching somewhat of a break are those in the Manhattan luxury market, representing the top 10 percent of the market. Median rent—a cool $10,000—has been unchanged annually over the past three months. Luxury listings declined annually for the first time in three months, the report said.
Record Brooklyn median rent
In Brooklyn, average rent per square foot rose to a record high for the fifth time in six months, increasing 6.2 percent, as per the Elliman Report, which noted that renters for nearly one out of three rentals signed leases for higher than the last asking rent, a trend that has been in effect since January. Median rent increased 1 percent annually to $3,733.
Market activity remains robust: listings and lease signings have been rising for nearly a year and a half, the report found. Listing were up 22.3 percent over June 2024 and new leases increased 8.1 percent annually.
Queens listings up 34 percent
For the Northwest Queens area covered by this report, rents have been rising annually since the beginning of the year. Median rent was up 10.8 percent to $3,600.
Nearly one in four rentals was leased for more than the last asking rent. Listings and lease signings have both been climbing for the nearly a year and a half, according to the Elliman Report. Queens rental listings were up a whopping 34.1 percent and new leases increased 6.2 percent.
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