Manhattan apartment rents climb during busy February for leasing

MANHATTAN apartment rents rose in February as a strong economy and tough sales market translated into a busy month for leasing.

The median rent on new leases signed last month was US$4,230, up 3.3 per cent from a year earlier, according to appraiser Miller Samuel and brokerage Douglas Elliman Real Estate. The monthly figure is below a record US$4,400 reached last summer.

Prices in Brooklyn climbed 2.9 per cent to US$3,499 and in northwest Queens, the median was up by US$1 to US$3,239.

Rents typically drop during the winter, but prices eased up less than expected this year, according to Jonathan Miller, president of Miller Samuel. Relatively low unemployment has boosted the market, and many house hunters are stuck renting as high mortgage rates make buying a property tougher.

“The economy has been too strong, for the time being at least,” he said.

Nearly 4,350 leases were signed in Manhattan in February, a 7.7 per cent increase from a year earlier. Leases in Brooklyn jumped 62 per cent to 2,498, while in northwest Queens – a part that includes Long Island City and Astoria – they reached a record of 591.

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As spring approaches in New York City, apartment costs often start to rise. Rents climbed 1.9 per cent month over month in Manhattan and 1.2 per cent in Queens, while they were flat in Brooklyn. Renters may face more increases in the coming season as the market gets closer to its busiest months, Miller said. BLOOMBERG