Record-High Median Rent in Manhattan in January

The median rent in Manhattan reached a historic high of $4,097 in January, the highest recorded for the month and the third-highest overall, according to the latest Elliman Report for the rental markets of Manhattan, Brooklyn, and Queens. This was a 15.4% increase compared to January 2022, and a 1.2% increase from December.^[0] The vacancy rate declined month over month to 2.5%, while new leases increased year over year for the first time in three months, rising from 3,159 to 3,441.^[0]

The median rental price was up 15% to $4,097 from the year-earlier month in Manhattan, according to the report from Douglas Elliman and Miller Samuel.^[1] In January 2022, the average rent in Manhattan was $5,142, an increase of 13% from the previous year^[1] In Brooklyn, the median rent was $3,499 last month, its second-highest level on record and a 25% increase year over year, while new leases increased month over month for the first time in four months.

January's median rents in Manhattan set a new record, due to a thriving job market and a lack of available apartments. In Manhattan, office leasing activity in January was more than double the amount of December, making it the most active month in office leasing since December 2019. This makes it the most active month in the largest office market in the U.S.^[2] The availability rate was unchanged, but five separate transactions of 250,000-plus square feet represented 54.0% of total demand.^[3]

In Manhattan, the number of condo sales last month, 186, was down 51% compared with January 2022, while co-op sales, 252, tumbled 49% year over year.^[4] Brooklyn had similar figures, with condo deals down 64% from January 2022, and co-op deals off 56%. Asking rents fell in all markets except the downtown market, which is suffering the most, and Midtown South’s leasing volume grew to 1.1 million square feet from 588,226 in December. Average asking rents fell in Midtown and Downtown year-over-year, while rents in Midtown South rose by $2.52 per SF.

0. “City kicks off 2023 with rents at or near record highs” Crain's New York Business, 9 Feb. 2023, https://www.crainsnewyork.com/residential-real-estate/new-york-city-kicks-2023-rents-or-near-record-highs

1. “Manhattan Rents Hit an All-Time High in January” NBC Chicago, 9 Feb. 2023, https://www.nbcchicago.com/news/business/money-report/manhattan-rents-hit-an-all-time-high-in-january/3067497/

2. “Manhattan Office Market Sees Strongest Monthly Leasing Since 2019” Globe St., 2 Feb. 2023, https://www.globest.com/2023/02/02/manhattan-office-market-sees-strongest-monthly-leasing-since-2019/

3. “Manhattan's Office Market Starts 2023 With Best Month Since 2019” Bisnow, 1 Feb. 2023, https://www.bisnow.com/new-york/news/office/january-is-manhattan-office-leasings-strongest-month-since-2019-117480

4. “New condos cool in Brooklyn, but hold steady in Manhattan” The Real Deal, 7 Feb. 2023, https://therealdeal.com/2023/02/07/new-condos-cool-in-brooklyn-but-hold-steady-in-manhattan/