New York City likes to buck a trend and do things its own way—even when it comes to rental trends.
As rents across the country drop, the price tag that comes with living in the Big Apple has risen again.
Rental rates in the top 50 metros fell an average of 1.1% from December 2023, but New York City saw a 5.6% increase, according to the latest Realtor.com report.
One of the main factors driving down rental prices across the country is the glut of new construction just coming on the market — something that’s in limited supply on New York City’s busy streets.
This increase in housing stock has led to an overall nationwide decrease in the absorption rate—that is, the number of new construction rentals leased within three months of construction completion.
The only place where the absorption rate has increased is in the Northeast, where it has increased from 58% to 67% year-on-year.
The national absorption rate is 55%, reflecting a rebalancing of the market to conditions prior to the COVID-19 pandemic.
The national median asking rental price is $1,695, the lowest since April 2022.
But in New York City, the median rent for a 0-2 bedroom apartment in the city is now $2,967.
Rents in Manhattan are particularly steep, with the overall median rent at $4,487 per month, up 5.4% year over year.
The median rent for a 0-2 bedroom in Manhattan rose 9% year-over-year to $4,387, while the median rent for a 3-bedroom plus is now $7,091, a 0.8% increase from December 2023.
“There seems to be a trend of smaller units getting more demand in Manhattan than in other more affordable neighborhoods,” says Realtor.com senior economist Joel Berner. “This could be a sign that there is renewed interest from young people moving to the city recently, while Manhattan rents had remained fairly flat following the pandemic recovery period.”
From the municipalities
The report shows that the market is starting to balance out, with rents rising in all five boroughs at more similar rates than before in 2024.
In most municipalities, rental properties are staying on the market for much longer than at any time last year.
Brooklyn rentals averaged 48 days on the market (a 60% year-over-year increase), while Manhattan listings averaged 51 days on the market — a 104% year-over-year increase.
In Queens, apartments are on the market for an average of 46 days, an increase of 39%, and rentals in Staten Island average 36 days on the market, an increase of 12.5% year over year.
Only the Bronx saw a slight decline in days on market, averaging 38 days, a 1.3% decline.
In terms of price, in December 2024, the average asking rent in Manhattan (the most expensive borough) reached $4,530, an increase of 2.1% from November and 6.4% from December 2023.
Rent in Brooklyn (the second most expensive borough) rose 2.9% month over month and 5.8% year over year.
Until December, rent growth in New York City was driven mostly by less expensive boroughs, which fell less during the pandemic and rose slowly through 2024.
Meanwhile, the Bronx saw its lowest year-over-year rent increase (4%) since March 2022, though it still outpaces December 2019’s 46.2%.
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Image Source : nypost.com