The Rental Market

New Yorkers who renewed their leases in September see more moderate rent increases

  • openigloo survey finds rents for September lease renewals increased by an average of 5.2 percent
  • Rent increases average 12.5 percent in August and 7.3 percent for September 2021
  • Brooklyn renters saw greater rent hikes (7 percent) than Manhattan (5 percent)
By Jennifer White Karp | October 10, 2022 - 4:00PM

The shift "is an indication that demand is stabilizing and landlords are preparing for a quieter rental season heading into the winter months,” says Allia Mohamed, CEO at openigloo.

iStock

New York City renters who renewed their leases caught a break on rent increases compared to renters who renewed in the spring and summer—and got hit with steeper hikes.

A new survey from openigloo, the rental listings and building review platform, found that rents for NYC renters who renewed their leases last month increased by an average of 5.2 percent compared to 12.5 percent in August and 7.3 percent for September 2021. Increases were more painful for Brooklyn renters (7 percent) than those in Manhattan (5 percent).

As the summer rental activity cooled, “rent increases on renewals dipped lower than 2021 levels for the first time this year. This is an indication that demand is stabilizing and landlords are preparing for a quieter rental season heading into the winter months,” says Allia Mohamed, CEO at openigloo.

Brooklyn rent increases on renewals were notably higher than Manhattan. “This could be early indication of increased demand in Brooklyn,” Mohamed notes.

Only a handful of NYC neighborhoods experienced double digit increases, including Clinton Hill, Williamsburg, and Crown Heights in Brooklyn. Gramercy renters also had double digit rent increases.

Of the NYC renters who renewed their lease last month:

  • 76 percent reported an increase of 0-4 percent
  • 5 percent reported an increase of 5-10 percent
  • 9 percent reported an increase of 11-20 percent
  • 6 percent reported an increase of 21-30 percent
  • 3 percent reported an increase of 31-50 percent
  • 1 percent reported an increase of over 51 percent

Rent hikes were much bigger in June, for example: While the majority of NYC tenants (67 percent) reported a rent increase of 0-4 percent, 15 percent reported an increase of 20-50 percent. 

Until recently, information about lease renewals and rent hikes was impossible to find—it’s not tracked anywhere. Openigloo, which has more than 1 million NYC users and over 40,000 reviews on its rental platform, started monthly surveys about lease renewals a year ago, in September 2021.

 

Jennifer White Karp

Managing Editor

Jennifer White Karp steers Brick Underground’s editorial coverage of New York City residential real estate and writes articles on market trends and strategies for buyers, sellers, and renters. Jennifer’s 15-year career in NYC real estate journalism includes stints as a writer and editor at The Real Deal and its spinoff publication, Luxury Listings NYC. She holds a B.A. from Wesleyan University and an MFA in nonfiction writing from the New School.

Brick Underground articles occasionally include the expertise of, or information about, advertising partners when relevant to the story. We will never promote an advertiser's product without making the relationship clear to our readers.
topics: