Here’s a quick snapshot of the NYC rental market for August 2023, with a focus on Manhattan and Brooklyn. You can view stats from the previous month here.
Note that the areas for “best deals” are determined by a combination of vacancy rates and/or areas with price declines (or lowest price increases, in the event of a rising market) across the most categories of apartment types. Keep in mind that “best deals” doesn’t necessarily mean “cheapest.” It just means places where you’re more likely to have some bargaining power and/or more options.
As expected, lease activity continued to be strong during the month of August, with signed leases up 2% in Manhattan and up 6% in Brooklyn compared to July. Interestingly, the boroughs showed divergent trends year over year. Lease signings were up on an annual basis in Manhattan (12%) but down slightly in Brooklyn (2%).
Median rents were flat month over month in Manhattan and grew modestly year over year. This was one of the smallest annual increases we’ve seen in the borough in 22 months. Meanwhile in Brooklyn, rents grew 5% on an annual basis, but otherwise remained flat compared to July. This further supports the idea that renters in both boroughs are reaching their cap when it comes to prices.
But in terms of inventory, Manhattan renters finally saw more relief than their Brooklyn counterparts. New rental listings saw a huge jump – 46% – to the highest level seen since 2021. It’s unclear what’s behind the huge jump, but it may be a host of sellers deciding to list their properties for rent rather than for sale. Brooklyn saw listings decline compared to July, but they were up a solid 17% compared to August 2022.
We’re poised to see more of the same with some slight relief for renters, thanks to somewhat higher inventory. And prices probably aren’t going to go much higher if current trends continue.
Unfortunately for renters, September is a hugely popular month for new hires to lock down new leases. The Fed is also signaling that one more interest rate hike could be in our future before the end of the year. This means more would-be buyers will continue to be renters. And that means competition will remain stiff as we close out summer.
As always, those who are well prepared will be in a solid position to nab a great spot. Here’s a video reminder of what you need in order to put your best foot forward – NYC Apartment Hunting Tips – The Key to Getting An Application in FAST.
To get the full NYC Rental Market Update for August 2023, click here.
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