“Much to the frustration of tenants, Manhattan’s median rent reached yet another new all-time high in May, hitting $5,125 as demand continues to outpace a persistently constrained supply environment. We’re seeing record pricing across multiple unit types, particularly in studios and one-bedrooms, as renters compete for a shrinking pool of available apartments. Vacancy remains historically tight and listings are down sharply year-over-year, driven by limited new development, a high rate of lease renewals, and city policy-driven outcomes that have slowed new construction and reduced inventory coming online. As we enter the peak summer leasing season, urgency has accelerated decision-making, pushing days on market lower and keeping this upward pressure on rents.
Brooklyn has also reached a new all-time high for rents, with the median price jumping to $4,347 as the borough continues to see strong, sustained demand. Price growth has reached every unit type, which shows just how competitive the market has become. While inventory ticked up slightly from April, it remains below last year’s level, again reflecting both ongoing supply issues and the impact of policy changes that have made it more challenging to deliver new rental housing. Add these factors to the typical seasonal demand, and it causes available homes to rent faster, while signed lease volume shrinks due to the lack of available options. Currently, we are facing the perfect storm of challenges for apartment seekers.”
– Gary Malin, Chief Operating Officer, The Corcoran Group