Manhattan apartment rents slip, ending streak of record hikes
Competition has grown fierce in Brooklyn and northwest Queens, including Astoria and Long Island City, where rents rose
[NEW YORK] Manhattan apartment rents declined in August, marking a reversal after a four-month streak of record hikes.
The median rent on new leases fell to US$4,600 in August, down 2.1 per cent from July, according to data from appraiser Miller Samuel and brokerage Douglas Elliman. Prices are still 8.4 per cent higher than a year earlier.
August is typically one of the busiest months of the year for rentals in New York City as college graduates arrive and families move before the new school year begins. But falling mortgage rates have provided an opening to would-be buyers, relieving the rental market of some upward pressure.
Leasing activity dipped from July, according to Jonathan Miller, president of Miller Samuel. Borrowing costs for a home loan have since dropped to an 11-month low, and weak jobs numbers combined with the anticipation of a rate cut could drive borrowing costs even lower.
“We are probably nearing the end in the steep upward trajectory of rents that we have seen in 2025,” Miller said.
The dip comes even as the number of available apartments dropped 9 per cent month-over-month to 9,625. After the Fairness in Apartment Rental Expenses Act barred landlords from charging new tenants their broker fees in June, landlords have been keeping vacant apartments off the market while they seek clarification on the policy.
Still, near-record prices in Manhattan may be pushing more renters to seek cheaper housing in outer boroughs. Competition has grown fierce in Brooklyn and northwest Queens, including Astoria and Long Island City, where rents rose. In Brooklyn, one in three leases were signed after a bidding war, while more than a quarter of rentals in northwest Queens garnered multiple bids.
In Brooklyn, the median rent on new leases jumped about 8 per cent year over year to US$3,950, up US$100 from the month prior. The median in northwest Queens climbed nearly 7 per cent year over year to US$3,775 a month and US$25 more than in July. BLOOMBERG
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