Manhattan Leads as NYC Rental Growth Remains Strong
Rents across New York climbed faster than the national average, while Staten Island showed early signs of stabilization.
Nina Dale
July 23, 2026
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Good morning. New York City’s rental market posted another month of above-average growth, rising 4.5% year over year compared with 2.1% nationally. Manhattan remains the clear growth leader, while other boroughs show mixed but improving conditions.
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Market Snapshot
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NYC Momentum
NYC Rent Growth Stays Ahead of the Nation as Borough Performance Diverges
New York City's rental market continued to outperform the U.S. in June, though growth patterns are becoming more varied across the boroughs.
By the numbers: According to Chandan Economics, using Zillow’s Observed Rent Index (ZORI), NYC metro rents increased 4.5% year over year in June, compared with 2.1% nationally. Manhattan remained the strongest performer with 6.8% annual rent growth, followed by Brooklyn (4.8%), the Bronx (4.6%), Queens (4.4%), and Staten Island (2.1%).
Monthly momentum: Rent growth remained positive in the short term, with NYC rents rising 0.4% month over month, slightly above the national increase of 0.3%. Staten Island and Manhattan posted the strongest monthly gains at 0.6%, while Queens increased 0.4% and Brooklyn and the Bronx each grew 0.3%.
Market trajectory: The broader trend remains favorable for New York, with three-month annualized rent growth reaching 5.2%, compared with 2.9% nationally. The data suggests that demand remains resilient, even as individual boroughs experience different levels of momentum.
Borough differences emerge: Manhattan continues to benefit from its location advantage and renewed renter demand, maintaining its position as the city's growth leader. The Bronx, after standing out in recent momentum, saw some cooling in June but remains ahead of Queens on an annual basis. Staten Island, while still trailing the rest of the city, showed early signs of stabilization with stronger monthly performance.
➥ THE TAKEAWAY
Investment outlook: The uneven performance across boroughs highlights the importance of evaluating NYC’s rental market at a more granular level. While established areas like Manhattan continue driving growth, improving trends in slower-performing boroughs could create opportunities as market conditions rebalance.
Around New York
➥ Despite safety concerns at the Pfizer office conversion, NYC still has ample potential for office-to-residential projects, with the incident unlikely to slow the broader conversion trend.
➥ A new hotel labor agreement in NYC is forcing lenders and borrowers to underwrite lower profits as higher worker wages add pressure to an already challenging hospitality market.
➥ A group of NYC landlords sued to overturn the rent freeze, arguing the approval process was politically influenced and failed to fairly consider rising property operating costs.
➥ A new 98-unit condominium in Brooklyn’s Windsor Terrace blends understated design with modern amenities to appeal to local buyers seeking luxury that fits the neighborhood’s character.
Follow the Money
| OFFICEFINANCIAL DISTRICT Mercor signed a 25,550 SF lease at One World Trade Center, pushing the iconic office tower to nearly full occupancy as AI firms continue driving premium office demand. |
| OFFICEMIDTOWN EAST Real estate firm Yuco Management and AI company Elite each leased 6,960 SF at 757 Third Avenue, underscoring continued demand for Class A office space in Midtown East. |
| MULTIFAMILYBROOKLYN GO Residential bought a 186-unit Brooklyn apartment building for $109M, headlining another active week of major New York City real estate deals. |
| OFFICEMIDTOWN SOUTH The owners of Midtown South’s Textile Building secured a $228.9M refinancing, positioning the renovated office property for stabilization as leasing activity continues to gain momentum. |
| MULTIFAMILYFINANCIAL DISTRICT Grubb Properties secured a $617M financing package to fund a new 462-unit Financial District apartment tower and strengthen its multifamily REIT platform. |
📈 CHART OF THE WEEK
Source: StorageCafe
The average 10×10 self storage unit in NYC costs $264/month, more than double the national average of $120. With limited space and high housing costs, self storage remains important for residents and businesses.
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