New York City apartment renters get some relief from record-high prices
NEW York City apartment hunters got some relief in August as rents declined in what’s typically the priciest month of the year.
In Manhattan, new leases were signed at a median of US$4,245, down 3.5 per cent from the previous August, when costs were at an all-time high, according to appraiser Miller Samuel and brokerage Douglas Elliman Real Estate. Median prices also fell annually in Brooklyn and Queens.
Manhattan’s decrease was the third year-over-year drop in four months, signalling a slight cooling off for the market after 2023’s march towards record highs. Rents may see continued declines for the rest of the year, given that fall and winter tend to be less competitive. Falling mortgage rates also may help ease competition for leasing by pushing more people to become homebuyers, according to Jonathan Miller, president of Miller Samuel.
“New York’s rental market is transitioning into softer conditions, and tenants will benefit from lower prices,” Miller said. “It doesn’t mean tenants should expect a significant correction moving forward, but there is some potential for some modest declines ahead.”
Rents will not fall precipitously, partly because there’s still so much demand. New lease signings surged year-over-year in each of the three boroughs the firms track. Miller attributes that to a high amount of “churn” in the market. Instead of accepting renewal hikes, tenants are going out in search of better value. In turn, that adds their units to the available inventory, giving other apartment hunters more choices.
In Manhattan, the 11,065 listings left available at the end of August was almost double the supply a year ago, the firms said.
While that offers some consolation to New Yorkers who have faced intense competition in recent years, there will not be much in the way of bargains to be found. Manhattan’s median on new leases last month was still 21 per cent higher than in August 2019, before the pandemic, and one out of every five renters paid more than what the landlord was asking, according to Miller.
“We are leaving an era of rapid rental price growth to one of more stability,” he said. “There will be some relief, but relative to already high rents.”
Brooklyn’s median rent on new leases last month was US$3,650, down 5.2 per cent from a year earlier. In Northwest Queens, the neighbourhoods closest to Manhattan, the median dropped 9.2 per cent to US$3,541. BLOOMBERG
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